Pi Network’s PI Suddenly Explodes by 20%: Recovery or Dead Cat Bounce?

The community is wondering what is behind this sudden price increase on Sunday.

The native Pi Network token has stolen the show in the cryptocurrency markets with a massive price surge that took it to a weekly high of around $0.10.

This is quite unexpected given the asset’s latest price action, which included dumping to several consecutive all-time lows. The question is whether this is a deep recovery or another dead cat bounce.

PI pumps hard on Sunday

cryptopotato has repeatedly reported over the past week on adverse price developments around the Pi Network’s PI token. The asset broke below the key $0.10 support last weekend and the bears took full control of the market. In the following days, they pushed it below $0.09 and $0.08.

PI recovered only after falling to $0.07, which turned out to be strong support. The token marked a new all-time low, which meant it had plummeted over 97% from its ATH over a year ago, but immediately recovered.

As reported yesterday, it showed some resistance and rose above $0.08. He remained there for approximately 24 hours before participating in the aforementioned rally today. It shot up almost 20% and is now near $0.10 for the first time in a week. This has become a key resistance level, which must be recovered before the asset has any chance of experiencing a larger rebound.

Dead cat recovery or rebound?

Although today’s rather unexpected but impressive rise has given some hope to the bulls, the history of PI has repeatedly shown that it is not that simple and that the hype could soon come to an end.

The asset has posted similar gains on numerous occasions in the past, especially after prolonged declines. However, once it becomes the top performer, it collapses and reaches its initial level or even lower within a matter of days. The last such example was in mid-March, when it skyrocketed from $0.20 to $0.30 during the Kraken listing turmoil.

It was rejected immediately and fell below $0.20 within 72 hours. Since then it has failed to regain its former glory, and the recent drop to $0.07 only proved it. Pi Network investors and believers would have to wait and see if this current rally is different.