Pi Network (PI) has recorded a 35% recovery this week, reaching a high of approximately $0.66 yesterday ahead of the much-hyped Pi2Day festival on June 28. The token recovered after a bearish trend in which it touched a low of around $0.47 a few days ago. It bounced back, falling 4.2% today, with the price currently at $0.548.
Recent Market Performance
The price rebound of Pi Network is expected in the wake of increased hype for upcoming Pi2Day. It is a community milestone event normally preceded by project milestones and ecosystem announcements.
But the rest of the crypto market has been under pressure. Other altcoins like SPX6900 and Celestia (TIA) also gained double-digit percentages in recent weeks. The creation of such market volatility proves that the rebound by Pi is significant amidst risk aversion concerns in the cryptocurrency world.
Causes that Contributed to the Rebound
Some of the causes that contributed to the rebound of Pi Network are:
- Investor Sentiment: Pending Pi2Day is generating hype. Past events have generated price rallies which are corrected later. Investors are hoping for mainnet news and usage increase for $PI.
- Community Involvement: Pi community is active, making hype and speculation. But most early miners who received $PI for free will sell on price appreciation, putting downward pressure perpetually.
- Market Conditions: While the Pi Network has been improved, the overall altcoin market has not been great, according to Coingecko data. Overall risk-averse sentiment could affect investors and leave them in doubt about the token’s prospects.
Challenges Ahead
While the 35% increase is great, the Pi Network also has some major challenges. The token’s long-term destiny is rendered insecure by glacial progress on important features like KYC authentication and support for mainnet. Few, if any, most users have not yet traded or received their $PI in freedom.
With full ecosystem launch or better foundation, the token price can continue to remain under speculation rather than sustainable growth.
The recent report that a 35% Pi Network gain before Pi2Day is testifying to the confidence of investors. The community, nevertheless, has to heal its own wounds if it wishes to keep growing. With the event now imminent, the world shall be waiting for news that will shake the fate of the token.
