Pi Network's native token, PI, has staged a 23% rebound from its record low of $0.1520 earlier this week, reaching approximately $0.1870. This recovery brings Pi Coin's market capitalization back to over $1.5 billion, with a daily trading volume of around $16 million, which is higher than its recent averages.
The rebound coincided with a broader market uptick, as Bitcoin moved back toward $90,000 and the total crypto market cap recovered to $3 trillion. The token also saw a lift following former U.S. President Donald Trump's speech at the World Economic Forum in Davos, where he addressed geopolitical matters.
Key drivers for the rebound include the Pi Core Team's launch of new developer tools. The team unveiled an easy payment integration library within the Pi App Studio, combining the Pi SDK and backend APIs to enable developers to integrate Pi payments into applications "in minutes," even for non-technical users. Additionally, a new option allows Pioneers to deploy app iterations without spending PI by watching ads, aimed at onboarding new users.
However, significant fundamental challenges persist. The Pi ecosystem remains less active than major chains like Ethereum and Solana. Over 1.2 billion PI tokens are expected to be unlocked in the next 12 months, creating potential sell pressure. The token still lacks a Tier-1 exchange listing post-mainnet launch, limiting accessibility. Furthermore, the network is criticized for its centralization, with the Pi Foundation holding billions of coins in hundreds of wallets.
An analyst on X (formerly Twitter) suggested that for Pi Network to evolve into a "comprehensive financial tool," it must focus on building a robust DeFi ecosystem. Recommendations include integrating peer-to-peer lending, staking rewards, and decentralized exchanges, and potentially collaborating with established DeFi protocols like Aave or Uniswap. Upgrading its Stellar-based consensus to support smart contracts and implementing Layer-2 scaling solutions were also highlighted as critical needs.
From a technical analysis perspective, the daily chart shows PI formed a double-bottom pattern and a hammer candlestick near its lows, which are potential bullish reversal signals. However, the token remains below all key moving averages and the Supertrend indicator. A retest of the key resistance at $0.1933 could lead to a bearish continuation, with a potential drop back to the all-time low of $0.1520.
