Pi Network price has been in a strong uptrend this week as investors bought the dip and cheered the rumors of its ISO certification. It rose to a high of $0.2918, up by 87% from its lowest level this month. This article explores why the Pi crypto jumped and what to expect in the near term.
Why the Pi Network price jumped
The value of Pi jumped by over 80% from its lowest level this year for several reasons. First, the rally was in line with the broader crypto market jump as traders waited for the Federal Reserve interest rate decision and the meeting between Donald Trump and Xi Jinping at the APEC Summit.
Economists were expecting the Federal Reserve to cut interest rates based on the recent macro data on the labor market and inflation.
A report released on Friday showed that the headline Consumer Price Index rose to 3.0% in September from 2.9 % in August, while core inflation fell to 3.0%.
Another report had shown the economy lost over 36,000 jobs in September, a trend that will continue after companies like Target and Amazon said that they would fire thousands of workers. These numbers, and the previous statement from Fed officials, confirmed that the bank would cut rates.
Second, the Pi Network price rose after rumors that Pi had received an ISO certification alongside other cryptocurrencies like Ripple and Stellar. Such a move would be good news for the token as it would take it mainstream and simplify its interoperability with the banking sector. It would also push more exchanges to list it.
Great News!
According to @Cointelegraph, Pi Network has joined the ISO 20022 group along with XRP & XLM. Aligning with ISO 20022 improves integration with traditional banking networks. This can lead to greater adoption, smoother transactions, and increased trust in digital
However, Invezz could not independently verify this information as a message to the team was not replied to at press time.
Third, Pi Network price rose after forming the highly bullish falling wedge pattern on the daily chart. This pattern is made up of two descending and converging trendlines, with a bullish breakout happening when the two lines near their confluence.
Additionally, some analysts warned that the Pi Network price rally was due to market manipulation. One analyst identified some unusual flows of tokens in exchanges like OKX and Gate. Again, Invezz could not verify this at press time.
Caution!
It looks like a case of market manipulation. large volumes are being transferred from Gate.io, Banxa, OKX, and PTC accounts, but I don’t see any significant buying activity from real investors.
Compare the % increase with other major cryptos.
The Pi Network price also jumped as the number of pioneers passing the KYC verification jumped after the team incorporated new tools to speed the process.
Is Pi Coin a good token to buy?
Pi Network is a high-risk and high-reward token. Its high risk comes from the fact that it has not achieved its original goal of creating a universal payment solution better than Bitcoin.
Pi Network has a small and relatively inactive ecosystem, unlocks millions of tokens a day, is highly centralized, has no roadmap, and is not listed by exchanges like Binance and Coinbase.
These major challenges are also the biggest opportunities that may lead to a Pi Network price surge. For example, there is a slim chance that at least one major crypto exchange will list it, a move that would push it up by double or triple digits.
Additionally, the developers can announce a major token burn event to offset the ongoing token unlocks. Such a move would be bullish as we saw with the recent OKB price surge.
Pi Network price would also surge if the developers came up with a roadmap and a strategy to fuel decentralization. In the current phase, the network is highly centralized, with the obscure Pi Network Foundation controlling over 90 billion tokens. A commitment to decentralization would likely push it higher by raising the odds of more exchange listings.
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