• Pi Network holds above $0.20 psychological level, approaching the apex of a descending triangle pattern on the 4-hour chart. 
• The CEXs' wallet balances recorded an outflow of over 1.32 million PI tokens, suggesting a surge in on-exchange demand. 
• Two payments of nearly 1 million PI each in the last 24 hours suggest an adoption boost.

Pi Network (PI) trades above $0.2000 at press time on Thursday, avoiding further losses below this psychological level. Technically, the PI token approaches the apex of the descending triangle pattern on the 4-hour chart, while on-chain data could provide tailwinds to tilt the breakout on the upside. 

On-chain data suggest a demand surge

An increase in outflow from Centralized Exchanges (CEXs) reserves signals a decline in available supply pressure, which could foster the next upcycle. PiScan data shows that the CEXs’ wallet balances record an outflow of over 1.32 million PI tokens in the last 24 hours, suggesting a surge in demand from exchange users. 

However, the majority of PI available supply remains off-exchange as Pi Network remains stringent on requiring Know Your Business (KYB) as a part of its listing process. 

CEXs' wallet balances. Source: PiScan

On the other hand, the Pi Network ecosystem witnessed a rise in payment transactions of 999,999 PI each, worth $200,199, in the last 24 hours. This suggests an increase in utility and adoption of the Pi Network. 

Large transactions on Pi Network. Source: PiScan

Technical outlook: Pi Network eyes triangle breakout rally

Pi Network holds above the $0.1919 support base formed by a 4-hour candle low on October 11. The baseline completes a descending triangle pattern with a local resistance trendline. 

PI approaches the apex of this triangle, after multiple bounce-backs from the $0.1919 base, with long-tailed candles in the last three weeks. A decisive close above the centre Pivot Point at $0.2086 would confirm a renewed uptrend, potentially targeting the R1 Pivot Point at $0.2249. 

The Moving Average Convergence Divergence (MACD) extends a sideways trend with a declining tilt below the zero line, suggesting a sell-side inclination. Additionally, the Relative Strength Index (RSI) reads 41, rising towards the halfway line, indicating a spark in buying pressure. 

PI/USDT daily price chart.

On the downside, if PI slips below $0.1919, it would confirm the downside breakout of the triangle pattern, which could result in a free fall to the $0.1732 mark, aligning with the S2 Pivot Point.