Pi Network Price Forecast: PI rally gains traction amid broader market recovery

Pi Network gains strength ahead of 20 million token unlock

Pi Network is up roughy 15% so far this week as the broader market risk-off sentiment fades. CoinMarketCap’s Crypto Fear and Greed Index rises to 29 on Thursday, from 19 the previous day, indicating that the investor's sentiment recovers from Extreme Fear conditions, as previously reported by FXStreet.

However, the daily token unlocks continue to weigh down on PI recovery. PiScan data shows 20.8 million PI tokens are scheduled to be unlocked on Saturday, marking the largest release in the next 30 days. Typically, token unlock leads to increased downside pressure, capping the recovery.

Technical outlook: Will Pi Network extend gains above $0.20?

Pi Network is up 5% at press time on Thursday, marking its fourth consecutive day of recovery. The PI token holds gains above the 50-day Exponential Moving Average (EMA) at $0.1749, signaling a boost in short-term bullish momentum.

Pi Network tests a supply cluster of the 100-day EMA at $0.1959 and a descending trendline, connecting the August 30 and November 28 highs, near the October 11 low at $0.1919. A decisive close above $0.1959 could extend the upside toward the $0.2613 resistance level, marked by the September 23 low.

The momentum indicators on the daily chart confirm a bullish bias in the short-term. The Moving Average Convergence Divergence (MACD) rises above its signal line as both extend above the zero line while the positive histogram widens, reflecting increased bullish momentum. At the same time, the Relative Strength Index (RSI) is at 65, pointing upwards and inching closer to the overbought zone as buying pressure strengthens.

Looking down, the 50-day EMA at $0.1749 remains a crucial support level, capping the downside risk to the October 10 low at $0.1533.

Crypto ETF FAQs

What is an ETF?

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Is Bitcoin futures ETF approved?

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Is Bitcoin spot ETF approved?

Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.

Which are the pros and cons of crypto ETFs?

The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.

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