Pi Network (PI) is planning to implement an important upgrade, transitioning from protocol version 19 to 23. This new version, based on Stellar Protocol 23, adds many functional layers and control mechanisms for the blockchain.
However, despite this technical milestone, the market sentiment surrounding PI remains quite subdued.
The market remains quite gloomy after the upgrade announcement
After launching the Node operating on Linux, on August 27, Pi Network announced that it will gradually upgrade, starting from Testnet1 ( which has now been launched) and continuing in the coming weeks, then expanding to Testnet2 and finally to Mainnet, bringing the entire ecosystem to version 23, a variant of Stellar Protocol 23.
Despite this development, the performance of PI remains quite modest. At present, this altcoin is trading around $0.34, below the 20-day exponential moving average (EMA), which is acting as a dynamic resistance level at $0.36.
The 20-day EMA line of PI | Source: TradingViewThe 20-day EMA line measures the average price of an asset over the last 20 trading days. When the price trades above the 20-day EMA line, it signals a short-term bullish trend and indicates that buyers are in control.
On the other hand, when the price of an asset drops below this level, the market will face increased selling pressure, causing short-term support to weaken. This puts PI at risk of dropping further in the next few trading sessions.
Moreover, the Chaikin Money Flow (CMF) indicator, which tracks the money flow in and out of an asset, has confirmed a bearish outlook. Currently, the momentum indicator is at -0.11.
PI CMF | Source: TradingViewThe negative CMF indicator shows that selling pressure is outweighing buying activity, reflecting weak capital inflow and a lack of bullish confidence in the PI market.
PI targets ATL level
If market sentiment remains pessimistic, PI is at risk of returning to the ATL level at $0.32. Falling below this support level could cause the altcoin to hit a new low in the near future.
Technical analysis of PI | Source: TradingViewConversely, if demand increases, PI may regain momentum and attempt to surpass the 20-day EMA at $0.36. If successful, the price may continue to rise to $0.40.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Pi Network is preparing to upgrade to version 23, but the bridge strength has not improved.
Pi Network (PI) is planning to implement an important upgrade, transitioning from protocol version 19 to 23. This new version, based on Stellar Protocol 23, adds many functional layers and control mechanisms for the blockchain.
However, despite this technical milestone, the market sentiment surrounding PI remains quite subdued.
The market remains quite gloomy after the upgrade announcement
After launching the Node operating on Linux, on August 27, Pi Network announced that it will gradually upgrade, starting from Testnet1 ( which has now been launched) and continuing in the coming weeks, then expanding to Testnet2 and finally to Mainnet, bringing the entire ecosystem to version 23, a variant of Stellar Protocol 23.
Despite this development, the performance of PI remains quite modest. At present, this altcoin is trading around $0.34, below the 20-day exponential moving average (EMA), which is acting as a dynamic resistance level at $0.36.
On the other hand, when the price of an asset drops below this level, the market will face increased selling pressure, causing short-term support to weaken. This puts PI at risk of dropping further in the next few trading sessions.
Moreover, the Chaikin Money Flow (CMF) indicator, which tracks the money flow in and out of an asset, has confirmed a bearish outlook. Currently, the momentum indicator is at -0.11.
PI targets ATL level
If market sentiment remains pessimistic, PI is at risk of returning to the ATL level at $0.32. Falling below this support level could cause the altcoin to hit a new low in the near future.
Vincent