Pi Network eyes $0.20 as CEX deposits drop and upgrade hype builds

Bitcoin (BTC) and Ethereum (ETH) are currently bullish as the new weekly candle opens positive.

This has spilled over to other leading altcoins, with Pi Network’s PI taking a breather from its recent selling pressure. 

PI is hovering above $0.1800 at press time on Tuesday after surpassing its 50-day Exponential Moving average (EMA) at $0.1782 over the weekend. 

The bullish price action is fueled by a drop in deposit rate on Centralized Exchanges (CEXs), together with the ongoing push for mainnet upgrades. 

CEX deposits cool down as the Core Team pushes for protocol 23 upgrade

PI is up by nearly 2% in the last 24 hours and is now trading above $0.1800 per coin.

The positive performance comes after the bulls ended the recent downward pressure caused by the supply unlock migrating to the mainnet.

The unlock enabled users to deposit their PI token holdings on CEXs.

Data obtained from PiScan revealed that 176,831 PI tokens were deposited over the last 24 hours, down from the 5 million PI token deposits reported on Friday.

The decline in CEX deposits limits the available supply on exchanges and reduces downside pressure.

Furthermore, the Pi Core Team is moving forward with the mainnet upgrade to protocol 23, with a deadline of May 15, after completing the protocol 22 upgrade on Friday.

The team revealed that it intends to reach protocol version 26 before June 28, to bring smart contract functionality on the mainnet, which could unlock real-world utility for the PI token.

PI gears up for a rebound towards $0.2000

The PI/USD 4-hour chart is bearish as PI has experienced selling pressure in recent weeks. At press time, PI is trading at $0.18081, above the 50-day EMA at $0.1782.

However, the 200-day EMA at $0.2302 reinforces the prevailing medium-term bearish structure.

Momentum signals are mixed on the 4-hour chart, suggesting that the bulls have not completely regained control of the market. 

The Moving Average Convergence Divergence (MACD) in slightly positive territory but at risk of a crossover below the signal line. 

In addition to that, the Relative Strength Index (RSI) is hovering above the neutral 50 level, suggesting a lack of decisive directional conviction despite modest underlying bid tones.

If the recovery continues, the bulls would face immediate resistance at the $0.1836 4-hour swing high.

A daily candle close above this pivot would be needed to ease near-term downside pressure. 

If the rally persists, the March 21 high at $0.2041 and the 200-day EMA at $0.2302 stand as more substantial barriers.

However, if the selling pressure resumes, the 50-day EMA at $0.1782 would serve as the first major support level.

The crucial support for PI remains at the April 13 low at $0.1633, followed by the February 23 low at $0.1556.

The mainnet upgrades could be the major catalysts behind PI’s rally over the next few days and weeks.