TLDR
- Pi Network is transitioning from protocol version 19 to version 23, built on Stellar protocol 23.
- The upgrade will be rolled out gradually, starting with Testnet1 and eventually reaching the Mainnet.
- Despite the technical advancements, Pi Network’s market sentiment remains subdued, with its price below the 20-day EMA.
- Pi Network’s current price is $0.34, and it faces resistance at the 20-day EMA of $0.36.
- Pi Network’s Chaikin Money Flow indicator is negative, suggesting weak capital inflows and a bearish outlook.
Pi Network is preparing for a major upgrade, transitioning from protocol version 19 to version 23. This new version, built on Stellar protocol 23, aims to enhance blockchain functionality and control. However, despite the technical progress, market demand for Pi Network remains subdued.
Testnet1 Launches Pi Network’s Transition
Pi Network’s gradual upgrade has already begun with Testnet1, which started as per the announcement on August 27. The upgrade will move to Testnet2 before reaching the Mainnet, transitioning the entire ecosystem to protocol version 23. The phased approach is intended to ensure stability and smooth integration of the new features.
Pi Network developers believe that the upgrade will enhance the network’s scalability and provide more control to its users. By leveraging Stellar protocol 23, Pi aims to improve its overall efficiency. However, the market’s reaction to this technical improvement has been less enthusiastic.
Pi Network Could Revisit All-Time Low
At present, Pi Network trades at $0.34, falling below its 20-day exponential moving average (EMA). This EMA level forms dynamic resistance at $0.36, signaling a lack of upward momentum. When a cryptocurrency falls below its 20-day EMA, it often suggests increasing sell-side pressure and weakening support.
- PI 20-Day EMA. Source- TradingView
Further analysis shows that Pi Network’s Chaikin Money Flow (CMF) indicator is also in the negative. The CMF reading of -0.11 confirms a bearish outlook, signaling weak capital inflows. The lack of bullish conviction further contributes to the subdued market sentiment surrounding Pi Network.
If the current trend continues, Pi Network could revisit its all-time low of $0.32. A drop below this level could lead to further price declines. However, if demand increases and market sentiment shifts, Pi Network could see a rebound.
A successful attempt to climb above the 20-day EMA at $0.36 would be crucial. Such a move could spark further gains, potentially pushing Pi Coin toward the $0.40 mark. Pi Network’s future depends on whether market conditions improve or not.
