Low volume, tight range, rising pressure — PI may be coiling for a breakout.
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Key Takeaways
PI’s realized volatility has steadily declined since peaking in February, aligning with a consolidation phase.
CoinGlass data reveals that PI’s funding rate has turned negative, increasing the risk of a short squeeze.
Technically, PI’s chart shows that it tests the upper boundary of a falling wedge and could break out.
At first glance, the Pi Network (PI) price action looks eerily quiet. But for bears betting against its PI’s price recovery, trouble could be looming amid a declining realized volatility.
At press time, PI’s price trades at $0.46, a range it has held since the beginning of the week. While volatility remains subdued, this analysis reveals that the consolidation phase could be the prerequisite for PI’s price to break out.
Pi Network Compresses
PI’s one-week realized volatility surged following its all-time high in February. However, recent data from Glassnode shows that volatility has steadily declined over the past two months.
This sustained drop aligns with PI’s price prolonged price consolidation — an indecisive phase marked by muted directional momentum that has tested the patience of both bulls and bears.
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Yet, the shrinking volatility could favor the bulls. Historically, long periods of consolidation set the stage for a major breakout as price compression builds potential energy for a strong directional move.
Amid this low volatility, PI may slowly move toward a potential rally.
From a technical perspective, the 4-hour chart shows that PI’s price decline has formed a falling wedge. However, as of this writing, the cryptocurrency attempts to break above the wedge’s upper trendline.
For that to be successful, PI’s trading volume has to increase. But in the last 24 hours, it has hovered around the same zone and is below $100 million.
If sustained, the PI coin price might keep swinging around the same region. However, if buying pressure increases, the volume around the cryptocurrency might spike, and this could lead to a full breakout.
Once validated, the market value of PI might rise toward $0.58. If this happens, the potential short squeeze might drive it higher, and the price could reach $0.69.
Alternatively, the trend might change if volume remains muted or bearish pressure increases. In that scenario, PI might drop to $0.40.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
