Pi Network price has crashed this month, continuing the downtrend that started on May 12 when it peaked at $1.670. It has plunged by 70% to the psychological point at $0.500. While sentiment remains bearish, a falling wedge pattern, falling volatility, and the upcoming Pi Day may trigger a strong rebound.
Pi Network Price Falling Wedge Signals a Rebound
The eight-hour chart shows that the Pi Network price has formed a falling wedge pattern, which often leads to a bullish breakout. This wedge is made up of two descending and converging trendlines.
In this case, the upper side of the wedge connects the higher highs since March 16, while the lower trendline links the lower lows since May 17. The two lines are nearing their confluence, which is when bullish breakouts tend to happen.
The price target of a falling wedge pattern is estimated by subtracting the wedge height from the breakout price. In this case, the height is $0.9285 minus $0.6594, which is $0.269.
After this, one adds the figure to the potential breakout point, which is $0.5328. Adding the two gives the target to $0.80, which is 56% above the current level.
A drop below the lower side of the wedge pattern will invalidate the bullish Pi Coin price forecast.
Falling Volatility Could Trigger a Short Squeeze
The other bullish catalyst for the Pi Network price is the falling volatility. On the twelve-hour timeframe, the gap between the three lines of the Bollinger Bands has thinned, a sign that it is no longer volatile.
The Bollinger Bands is an indicator made up of a moving average and two positive and negative standard deviations. A narrowing spread of these lines often leads to a major breakout in either direction.
The Average True Range (ATR) indicator has continued falling, also signaling that the volatility has dropped. With the Relative Strength Index (RSI) at the oversold level, Pi Coin price will likely have a bullish breakout.
Pi Coin Price Could Rise Ahead of Pi Day 2
The most likely catalyst for the Pi Network price is the upcoming Pi Day 2 commemoration on June 28. This is an annual event also known as Tau Day. Tau Day celebrates the constant tau, which is equal to 2π.
While not as widely celebrated as the March 14th Pi Day, this one could lead to volatility. Historically, the Pi Core Team has used these commemoration days to make major announcements. In this one’s case, it coincides with the end of the .pi domain auctions.
The Pi Core Team will likely make a major announcement before or after the event, which may boost the token price.
Summary
Pi Network price has crashed in the past few weeks in line with the broader crypto market outlook. Bitcoin briefly dipped below $100,000, but has recovered since then. While the downtrend may continue for Pi Coin, the forming falling wedge pattern, low volatility, and the upcoming Pi Day event may lead to a bullish breakout.
