Version 20 makes Pi Network hot again: Can PI break the resistance of 0.38 dollars?

Pi Network has just launched version 20 of the blockchain protocol on the testnet, a new advancement that has sparked lively discussions within the community and contributed to a slight increase in the market value of Pi Coin.

This update is the first upgrade in a series of planned versions, aimed at perfecting to version 23 – an important milestone before the network can fully transition to Mainnet. Unlike previous updates that received little attention, version 20 has attracted interest from analysts and the long-time following community. Notable cryptocurrency supporter Dr. Altcoin considers this a sign that the project's technical framework is constantly progressing. With millions of mobile miners operating in Pi's closed ecosystem, even incremental upgrades carry symbolic meaning, reflecting continuous progress.

The unique position of Pi – combining foundational mining with the growing interest of institutions – has placed this currency on the watchlist of investors. Recently, a large asset management company even introduced an ETP linked to Pi, emphasizing how financial institutions are beginning to view this network not just as a social experiment.

Market data shows a cautious yet notable reaction. Over the past 24 hours, Pi Coin has increased by about 4%, trading around $0.36. In the past week, this coin has recorded a rise of more than 6%, although the long-term chart shows clearer challenges: a decline of nearly 10% in the past month and a loss of over 75% in six months. However, compared to the initial peak, Pi is still up over 250%, demonstrating the volatile yet resilient performance of this coin.

Short-term bursts of enthusiasm often occur after announcements related to Pi, but maintaining sustainable growth momentum remains a challenge. Investors are currently divided between optimism about technical progress and concerns about delays in achieving a fully Open Network.

In addition to upgrading the protocol, Pi Network has launched a domain auction initiative, extending until the end of September. This program allows participants to own unique Pi domain names, adding a layer of personalization and new utility to the ecosystem. Supporters see this as the first step towards promoting digital services and businesses to be operated directly on the Pi platform.

The auction may not directly affect the token price, but it shows that Pi is expanding its activities beyond the mobile mining model. With a network still operating "behind the firewall", user-driven incentives may play a key role when the Mainnet launches.

The increase in CEX reserves reflects weak retail sentiment

One of the notable signals in recent days is the sharp increase in the amount of Pi reserves on centralized exchanges (CEX). This trend mainly arises from users increasing their deposits of tokens onto the exchange, usually in preparation for selling activities.

According to data from PiScan, in just the past 24 hours, the balance of CEX wallets has increased by 2.01 million PI tokens. This is a significant number, especially in the context of Pi recently recording a short-term price recovery. The strong influx of funds into exchanges is often viewed by analysts as a signal of potential supply pressure, reflecting cautious sentiment and declining confidence from retail investors.

CEX wallet balance | Source: PiScanThis movement may create a resistance to the current upward trend of Pi, as the demand for accumulation seems to be giving way to a short-term profit-taking trend. If selling pressure continues to increase, Pi's recent recovery may be at risk of being limited, making it difficult for the market to sustain a breakout.

Pi Network aims for breakthrough channels

On Friday's trading session, PI recorded an increase of over 3%, bringing the price close to the upper boundary of the descending channel pattern on the daily chart. This is a noteworthy signal as the recovery occurs right after a consolidation phase lasting more than a week, raising hopes for a potential breakout of the descending channel that has restrained the trend for some time.

Technically, a decisive closing above $0.36 will serve as a confirming indicator for the breakout scenario. At that point, the price of PI is likely to challenge the 50-day exponential moving average (EMA 50) at the $0.38 level. This is considered a significant barrier, as the 50 EMA often acts as a dynamic resistance zone, especially during market phases under corrective pressure.

Technical indicators are also reinforcing confidence in the potential for a trend reversal. The MACD and signal line continue to maintain a positive expansion momentum, indicating stable growth momentum. At the same time, the RSI is currently fluctuating around the neutral threshold near 50 but has seen a strong bounce back, reflecting that buying pressure is gradually recovering. This consensus increases the outlook that the market could enter a deeper recovery phase if key resistance is broken.

PI Price Chart 1 Day | Source: TradingViewHowever, the negative scenario cannot be overlooked. In the event that the price cannot maintain its upward momentum and closes below the upper trend line, PI risks returning to test the historical bottom of $0.32, a price recorded since August 1. Such a reversal would not only negate the breakout signal but also create significant pressure on investor sentiment, especially in the context of increasing reserves on centralized exchanges, signaling potential selling pressure from retail.

Overall, Pi Network is facing a sensitive phase. A successful breakout could open up room for a broader recovery, while a failure at the resistance zone would reaffirm the strength of the downtrend. Therefore, the upcoming closing session will be crucial for the short-term price movement of PI.

Lilly