Pi Network price is showing signs of bottoming, signaling a potential rebound as whale accumulation gains steam and the altcoin season starts.
Summary
- Pi coin price could jump as whale buying spree gains momentum.
- The coin has formed a double-bottom pattern on the 12-hour chart.
- Pi token has also formed a bullish divergence pattern.
Pi Coin to benefit from whale buying and altcoin season
One whale believes that the Pi Network price is a bargain after it plunged by nearly 90% from its all-time high. On-chain data shows that the investor has been actively buying the token in the past few weeks.
The investor is spending thousands of dollars each day boosting his stake, which has made him the biggest holder. According to PiScan, the investor bought 441,549 coins worth $156,043 on Thursday, a day after he acquired 1.573 million coins.
The accumulation has brought total holdings to 373.78 million coins, currently valued at over $132 million. Most importantly, his holdings would be worth over $1.12 billion if the coin advances and returns to its all-time high.
The ongoing whale accumulation is highly contrarian, considering that Pi has plunged since its mainnet launch. It could be a sign that the investor expects the coin to rebound, potentially after an exchange listing or a token burn announcement.
The other potential catalyst for the Pi Network (PI) price is the new altcoin season. Data shows that the Altcoin Season Index jumped to 78, a move that may lift most coins.
Further, the upcoming Federal Reserve interest rate cuts may lead to a risk-on sentiment that drives most altcoins higher.
Pi Network price technical analysis
The 12-hour chart points to an eventual Pi Network price rebound. It has formed a double-bottom pattern at $0.3321, its lowest level on Aug. 1 and Aug. 26. Its neckline is at $0.4652, its highest level on Aug. 10. A double-bottom pattern often leads to a strong bullish comeback.
The Relative Strength Index has been forming a bullish divergence pattern. This pattern happens when an asset is rising gradually as the price consolidates or falls. It has now moved above the neutral point at 50.
Therefore, the Pi Network token is likely to rebound and possibly reach a key resistance point at the neckline at $0.4652, about 32% above the current level.