Pi Network, Cross-chain Test Successful...Thought It Was Dead, But Is It Finally Taking Off?

▲ Pi Network / Source: X

While Pi Network (PI) remains within a falling wedge pattern on the 4-hour chart, the testing of cross-chain functionality within its ecosystem is raising expectations for a short-term bullish breakout. Pi Coin is maintaining its price above $0.1700, and a positive divergence in the Relative Strength Index (RSI) is analyzed to support the possibility of a breakout above the falling wedge pattern.

FXStreet reported on the 13th that Pi Network traded downwards on Wednesday, continuing its sideways movement within a falling wedge pattern on the 4-hour chart. PiChain Global, an e-commerce platform within the Pi Network ecosystem, has deployed cross-chain smart contracts on the BSC and Optimism OP testnets. This was presented as an example demonstrating that new functionalities are becoming possible through the ongoing mainnet upgrade.

PiChain Global announced via X (formerly Twitter) that it successfully deployed cross-chain smart contracts on two different blockchain testnets. PiChain Global plans to extend this functionality to the PCM Wallet, and due to limited resources, the Meeta social app has been temporarily suspended.

The cross-chain functionality is linked to the mainnet upgrade being pursued by the Pi Core Team. The Pi Network testnet has reached Stellar Protocol v23, and mainnet nodes must complete the Protocol v23 upgrade by Friday to maintain network connectivity. It is explained that once the transition is successfully completed, similar cross-chain functionalities will also open up on the mainnet, potentially expanding the utility of Pi Coin.

Technically, Pi Coin is trading sideways between the psychological price level around $0.1700 and the May 9th high of $0.1766. An upper trendline connecting the highs of April 29th and May 6th is limiting upside movement, while a lower trendline connecting the lows of April 30th and May 8th is forming a support zone. These two trendlines create a falling wedge pattern, which is generally interpreted as a structure likely to lead to an upward breakout.

On the 4-hour chart, the Moving Average Convergence Divergence (MACD) is staying above its signal line, and the histogram shows a decreasing trend towards the zero line in the positive territory. The Relative Strength Index (RSI) is gently rising at 46, within the neutral zone, and a positive divergence has been observed while the price remains above $0.1700.

To the upside, the area around $0.1766, which coincides with the short-term downtrend line, is presented as immediate resistance. A sustained breakout above this level is required to alleviate current upward pressure and open up the possibility of further gains towards the May 6th high of $0.1881. Conversely, to the downside, $0.1700 serves as initial support, followed by the area around $0.1670, where the active descending support trendline passes, as the next support zone. It is analyzed that if this zone is broken, a deeper correction could occur, weakening the sideways structure.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*