The calm before the storm! Pi Network (PI) shows signs of flashing accumulation, and a strong pump is coming soon.

Pi Network (PI) has failed to reclaim the important threshold of $0.50 amid the wave of Bitcoin reaching new highs, continuing to lag behind other alts. However, the situation may soon reverse, as analysts predict that the decline in Pi coin's volume and Fluctuation is often a sign of slow accumulation, and a strong surge is expected soon.

Despite the fact that the cryptocurrency market has surged this month, with a total market cap exceeding $3.68 trillion, the price of PI remains under pressure. This performance is likely due to the ongoing token unlocks, which are increasing the supply every day.

PiScan data shows that the network will unlock over 145 million tokens worth 67 million dollars for the remainder of this month. 138.5 million tokens will be unlocked in August, 117 million tokens in September, and 93 million tokens in October.

In addition, as investors continue to transfer tokens from exchanges, the price of Pi coin has also dropped significantly. In the past 24 hours, the outflow of exchange tokens has surged by more than 1.4 million coins.

Investors will transfer tokens out of the exchange when selling them. This, in turn, leads to greater selling pressure, especially when the unlocked supply of tokens is on the rise.

Due to the immense power of the Pi Foundation, people are also concerned about the centralization of the Pi Network. Its wallet holds tokens worth over $33 billion, yet it has not undergone any audits. This level of centralization partly explains why many mainstream exchanges have yet to list it.

In this bull market, the volume of PI coin has also been very low. Its 24-hour volume is 80 million USD, lower than other popular tokens such as Pepe (PEPE), Shiba Inu (SHIB), and Bonk (BONK).

PI technical indicator suggests a pump is imminent

According to CoinGape, the ongoing price drop of PI may be the calm before the storm, as the acceleration of cryptocurrency could trigger a surge. Over the past few months, its volume and Fluctuation have significantly decreased. The decline in volume and Fluctuation is often a sign of slow accumulation.

The accumulation phase of the Wyckoff theory leads to strong pumps when entering the markup phase. The characteristics of the markup phase are that demand exceeds supply.

The price of PI coin is forming a double bottom pattern at $0.4056, with the neckline at $1.6664, the highest point in May. Similarly, the token has also formed a descending wedge pattern, which is a common bullish reversal pattern. The two lines of the wedge are about to converge, which could lead to a breakout.

In addition, the MACD indicator has formed a bullish divergence, which is a highly bullish pattern. Therefore, the token may break through the key resistance level of 1 dollar. A breakout of this resistance level would indicate further upward movement, potentially reaching 1.666 dollars.

On the other hand, breaking below the support level of 0.4056 US dollars (double bottom pattern) will invalidate the long-term bullish forecast for PI coin.

(Source: Trading View)