The latest US CPI report poured another cold shower on the cryptocurrency market, triggering further declines in countless digital assets, including BTC, ETH, XRP, and more.
Recall that inflation in the world’s largest economy for October came in higher than expected, meaning that the Fed is now more likely to increase interest rates at its next meeting: a development that is viewed as bearish for the industry.
Despite the renewed downfall, a handful of tokens escaped the red wave, and interestingly, one of them is Pi Network’s PI. The big question is what might have caused its sudden resurgence and what the next potential targets are.
Bulls Take Control?
PI has been on a massive downtrend over the past several months, and just a few days ago, it tumbled to a new all-time low of around $0.063. Shortly after, though, buyers stepped in and staged a recovery to the current $0.072 (per CoinGecko), a 2% increase over 24 hours.
According to X account BSCN, this ascent appears technical as PI emerges from an oversold situation, along with a small increase in open interest for derivatives contracts. The team also outlined the upcoming Ecosystem Summit, which may have sparked enthusiasm across the community.
The three-day online event is scheduled for November 17-19 and will feature platform updates, developer-tool demonstrations, app showcases, and discussions between devs and the Core Team.
The price rebound has drawn attention from analysts, some of whom anticipate a further increase in the near future. X user Crypto With Gopal claimed that PI is breaking out of a bullish triangle pattern on the 15-minute chart, with buyers reclaiming the consolidation zone and showing improving momentum. He outlined the $0.07-$0.069 zone as important support, envisioning a pump to as high as $0.079 if the price stays above that range.
“PI bulls are showing strength! Momentum is shifting in favor of buyers,” he concluded.
Bull Trap?
The token’s revival ahead of the Ecosystem Summit doesn’t guarantee that a full-blown bull run is about to begin. In fact, traders and investors should be extremely careful about a potential sell-the-news event that may send the price deep into red territory again.
This happens when traders buy a token in anticipation of a major catalyst but start taking profits once it occurs, causing heightened selling pressure and a price decline. That was the case in March this year, when PI rallied hard ahead of its much-anticipated Kraken listing but crashed after the exchange officially embraced the coin.
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