Key points:
- PI crypto rose to $0.29 after an impressive parabolic move riding on the Kraken listing and a major network update.
- Overbought conditions highlight the risk of taking profits.
- Listing Pi coins on Kraken is an important step in the project’s journey.
Pi Crypto, the original cryptocurrency of the Pi network, became the largest earner among the top 50 coins by market capitalization. Experts expected it to be a “buy the rumor, sell the news” event.
Pi coin rose to $0.29 on the day and was priced at $0.20 at press time. Its weekly changes showed that it has risen more than 38% in the last 7 days. This latest rally has taken the altcoin to levels last seen last November. In fact, this week’s rally led to a major test of 6-month resistance.
A push above a resistance can lead to a further rise, as this means that the cryptocurrency will break out of its lower range.
The big question now is whether the Pi can sustain the current momentum. It is already oversold on the 1-day chart. So, the possibility of short-term profit taking was higher, especially considering that the price also retested the key resistance level.
This is why Pi Crypto is rallying this week
Pi coin’s new momentum was no accident. Its main catalyst was the recently announced listing of Kraken, scheduled for March 13. The anticipation surrounding Pi Coin’s launch on Kraken has mirrored the excitement the cryptocurrency has gained over the past few days.
The announcement of the listing created excitement as Kraken is one of the top cryptocurrency exchanges in the world. Moreover, it exists since 2011 and its headquarters is located in the USA (Wyoming).
Kraken is currently traded on 20 cryptocurrency exchanges by volume. Therefore, this listing means that Pi crypto will be available in one of the largest markets in the world.
Although Pi Crypto is up more than 60% since its March launch, analysts expect a rebound. This is because coins historically rally before major events and retreat after. A phenomenon commonly known as “buy-sell-news”.
If this happens, Pi’s crypto will likely experience a significant drop after Kraken’s launch. This is the reason for the profits to be made by the holders who took advantage of the listing news by buying at the recent lows.
What does the future hold for Pi Crypto?
The journey of crypto and the Pi network to the mainstream has not been entirely smooth. In fact, it took the network nearly 5 years from inception to secure a listing on CoinMarketCap, let alone a listing exchange.
Before that, the network had a hard time dealing with fraudulent claims and maintaining mainstream trust. It has so far secured a listing on some of the smaller exchanges, but listing on the major exchanges has largely remained elusive.
The fact that Pi coin is now listed on Kraken is therefore a minor milestone. One that will likely pave the way for listing on other major exchanges.
The lack of listing on major exchanges has previously limited Pi coin’s access to liquidity. This is why the Kraken listing makes so much sense for the Pi network. It can unlock healthy liquidity inflows and set the pace for higher value inflows in the long run.
The influx of liquidity is also expected to set the pace for broadband adoption into the mainstream. This can unlock more value in the long run. Crypto pi is heavily discounted from its all-time highs. Its recent developments and low-cost nature may increase its appeal among crypto investors.
