Pi Coin (PI), the native token of the Pi Network, started this week with a jump of over 26% on Monday, climbing up to $0.29 before dropping. At the time of writing, the token is trading for $0.23, which is up 10% in the last 24 hours. The question on every trader’s mind is, can the token keep up this momentum.
This surge saw a push to $0.28 before the price dropped. The surge started as the Monday morning trading season opened after the token consolidated sideways throughout the weekend. The token attracted a massive 821.12% increase in trading volume, which recorded over $127 million in a single day according to data from Coinmarketcap.
On the charts, Pi broke above both its 7-day moving averages, with the RSI climbing from 40 to 69 before dropping down to 53. This means that the bulls initially took over the market, however, the market is indicating a sign of overbought, which is an indication of a possible reversal.
Currently, major indicators are bullish. Still, the token seems to have rejected off a resistance zone at $0.28. If the price closes above it, Pi may move higher, but if not, it could drop toward $0.20.
What Caused the Rally
The reason for the recent surge had to do with the progress in the Pi Network’s mainnet. According to a recent report from the team on Oct 23, over 3.32 million users completed their KYC process and moved their tokens to the mainnet. This reduced the number of Pi tokens on exchanges. It also increased investor’s trust on the network and prepares the network for real-world use.
Around 4.76 million accounts still need to complete their KYC process, but completion rates are improving each week.
