Pi Network Price Forecast: Unknown wallet buys the dip with 1.40 million PI tokens
- Pi Network edges lower to the $0.43 support level as the lower high streak continues on the 4-hour chart.
- An unknown wallet acquires 1.40 million PI tokens, signaling confidence in the network.
- The technical outlook indicates an increased downside risk as buying pressure declines.
Pi Network (PI) edges lower by 0.61% at press time on Tuesday following the bullish failure to hold at higher levels on Monday. Amid the pullback to its weekly support of $0.43, an unknown wallet address has acquired 1.40 million PI tokens, advancing its week-long buying spree. Still, the technical outlook remains bearish as the bullish momentum wanes.
Large investor extends the PI tokens buying spree for a week
PiScan data indicates that the “GASWBD...J2AODM” wallet, potentially associated with a large investor, has added over 1.4 million PI tokens from the OKX exchange. The purchase marks the biggest transaction on the network in the last 24 hours.
Wallet transactions. Source: PiScan
It is worth noting that the large investor has acquired over 11 million PI tokens in the last seven days.
PI risks losing the $0.43 support level as buying pressure declines
PI fails to uphold the bullish momentum spark on Monday as overhead selling pressure at the 100-day Exponential Moving Average (EMA) results in the $0.43 support level retest. The support level has remained intact since July 15, avoiding a candlestick close below this level on the 4-hour chart.
If PI falls below this level, it could test the $0.42 level, marked by the low of July 15, followed by the $0.40 psychological level.
The Relative Strength Index (RSI) faces downside as it falls to 42 below the midpoint line, suggesting a decrease in buying pressure.
The Moving Average Convergence Divergence (MACD) is on the verge of closing below the signal line, which would flash a trend reversal and a sell signal.
PI/USDT daily price chart.
On the other hand, a reversal above the 200-day EMA could reestablish a bullish trend, targeting the $0.50 psychological level.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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