Pi Network, which has experienced a serious decline in recent weeks, has begun to recover signals. Technical indicators and developments in tokenomy show that the price can soon rise. Investors are focused on supply and demand balance and technical analysis signals.

The amount of token opened in the lock decreases

With the officially switched to the Open Network stage on February 20, PI Token was released and experienced intense volatility. Coin, which fell from $ 1.8 to $ 0.7 and then rises to $ 3, has currently lost more than 45.3 %.

A Vietnam -based Pi Network Community Channel says that the price decrease is largely related to the large amount of PI tokens, which were largely locked in the first month. However, according to the team’s statements, the circulating supply fell from 7.2 billion to 6.7 billion and the amount of circulating token continues to decrease.

In addition, the existing circulatory supply is estimated to be only 1.7 billion. 5 billion PI Token is still locked because users do not complete authentication processes. Next month, the daily amount of token is expected to drop from 13 million pI to 3.8 million pI. This shows that with the reduction of supply, the price may move upward if the demand remains constant.

Technical indicators point to the rise

A crypto analyst said that the PI/USDT parity moves in a falling channel and the price was constantly rejected from the upper trend line, but strongly attached to the lower support level.

According to the analyst, the trend may reversal if this decrease channel is upward and a strong momentum is caught. In particular, the transformation of a previous level of resistance into support point is considered as an important development that strengthens bull signals. If the PI exceeds these technical levels, the price has the potential to increase up to 2 dollars.

Critical period for Pi Network

The fact that the Pi Network team reduces the amount of tokens opened and supports the rise of technical indicators indicates that PI Token may gain value in the coming process.

However, price movements will largely depend on market demand and investor interest. If the demand remains constant or increases, the decreasing supply can be recovered in the price of PI token. On the other hand, if the market conditions follow negatively, the decline trend may continue. For this reason, it is important that investors closely follow the technical indicators and supply-demand balance.