Pi Network forms a risky pattern despite some major upgrades

Pi Network price has remained in a narrow range in the past few months, and the recent actions by the developers have not boosted its performance. The token was trading at $0.086 on Tuesday, down by 70% from the year-to-date high, even after the developers launched major upgrades.

Pi Network has made some major updates

Pi Coin price has been in a tight range in the past few months, mirroring the performance of other cryptocurrencies like Bitcoin, Ethereum, and XRP. 

This consolidation continued today, even after the developers launched some major upgrades. On August 14, the developers launched Pi Node version 0.6.2, which introduced improvements to SoloHost, Node connectivity, and Pi Desktop user experience. 

At the same time, the developers completed the distributed computing test through a SoloHost, which advanced the utility of Pi Nodes beyond supporting the Pi blockchain.

In a separate statement, Pi Network launched an upgraded version of the Pi App Studio that will change how apps are priced. This upgrade means that creators in the ecosystem will now pay more money to build their apps.

Before the changes are implemented, creators pay 0.25 Pi to create and 0.25 Pi to make an edit to an app. Since the real costs of doing this is higher than that, Pi has been paying the difference, something that he will change.

The update means that Pi will only subsidize apps that are trying to achieve real utility. For other apps, the App Studio will have a standard creation and editing price that reflects the actual cost of these services. This means that the overall cost of building apps in the ecosystem will be more expensive than where it is today.

Pi faces some major challenges

Pi Network price faces some major challenges that are affecting its performance. The most important one is demand and supply. Demand remains weak, with the 24-hour trading volume being $5.8 million, down by 17% in the last 24 hours. This is a significantly tiny amount for a coin that has a market capitalization of $952 million.

At the same time, the coin’s supply continues growing, with the circulating supply of 11 billion. The network will unlock over 128 million tokens this month and 1.705 billion in the next 12 months. A combination of weak demand and higher supplies often leads to more downside over time. 

Pi Network price has formed the risky bearish pennant pattern

Pi Coin price chart | Source: TradingView

The daily chart shows that the Pi Coin price has remained under pressure in the past few days. Now, it has formed a symmetrical triangle pattern, whose two lines are about to converge. This triangle is part of the bearish pennant pattern, a common continuation sign in technical analysis.

The token has dropped below the 50-day Exponential Moving Average (EMA), a sign that bears remain in control. Also, the Relative Strength Index (RSI) has continued falling. Therefore, the token will likely have a bearish breakout, potentially to the key support at $0.070, its lowest level this year.