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- An analyst has asked the PiCoreTeam to draw lessons from the Mantra collapse as the Pi Network transitions to the Open mainnet.
- Analysts have predicted that Pi could take a nosedive as Bitcoin forms a rising wedge pattern; meanwhile, others expect a surge above the $1.2 resistance level.
In a recent update, CNF comprehensively explored the UST-style crash of the Mantra’s native token, OM, on Sunday evening. In just 24 hours, the asset lost around 90% of its value, falling from $6.3 to $0.42. Currently, OM seems to be making a rebound attempt as it rises to $0.61; however, the Pi Network community is suggesting that the team take a cue from this fatal fall.
Joining this appeal is a popular crypto expert known as Dr Altcoin. According to him, Pi Network is not immune to this crash especially as it transitions from the Open Network to the Open mainnet. Additionally, he believes that a more strict regulation could prevent some of these occurrences to a larger extent.
The OM incident is a wake-up call for the entire crypto industry – proof that stricter regulations are urgently needed.
Many community members have already raised concerns about the mode of operation of the PiCoreTeam. Dr Altcoin, for instance, highlighted in his post that the team is not transparent. Meanwhile, Bybit CEO Ben Zhou believes that this is a “soft description” of what the project actually is.
Recently, Zhou labelled Pi Network as a scam and accused them of rejecting a listing offer. He also referenced a 2023 report by the Chinese authority which cautioned its citizens of a project that primarily targets elderly individuals. However, the Pi team denied any form of association with Bybit and clarified that the X account cited in the initial claim is not affiliated with the project.
Pi Price Analysis
Pi is currently holding strong at $0.71 after surging by a staggering 28% in the last seven days. According to our market data, this is the highest it has reached since March 29. Also, the current level is 92% higher than its yearly low.
Prior to this rebound, the asset was in a downward trend as its dilution continued with 1.56 billion tokens expected to be released into circulation in the next 12 months. As indicated in our earlier discussion, 188 million tokens would be unlocked in the next 30 days.
Analysts also expect Pi to take another nosedive as Bitcoin forms a rising wedge pattern. According to them, this has been in place since April 5 and is supported by the emergence of bearish divergence.
While the Relative Strength Index (RSI) has begun a downward spiral, its Price Oscillator is set for a bearish crossover. According to analysts, a validation of this bearish analysis could see Pi declining to $0.39. Mathematically, this is 47% below the current price.
Conversely, Pi has also been tipped to breach its resistance level at $1.12. As explained in our last analysis, a break above this level could see the price reaching $3.
