Pi Network Coins Surge 7% Amid Whale Activity and Value Trade Opportunity

Pi Network coins experienced a significant surge of 7% on Wednesday, rebounding from an all-time low price just above $0.50 on Sunday. This volatility has raised questions about whether traders will return to Pi this summer. Pi bulls, however, remain optimistic.

Over the past 30 days, Bitcoin traded relatively flat with a -0.7% change, Ethereum fell by -2.86%, and XRP decreased by 4.39%. In comparison, Pi coin saw a 28% decline over the same period, ending Wednesday, June 25. On a trailing 12-month basis, Pi is down by over -66%.

Despite the recent downturn, several analysts have outlined reasons to be more bullish on Pi in July. Pi was launched on crypto exchanges in February at around $0.71 per token, quickly rising to $2.79 within days. However, the price has since declined, with the exception of a strong six-day rally in mid-May. This price drop can be attributed to technical market factors, such as the cryptocurrency overheating and early adopters taking profits in a "buy the rumor, sell the news" market.

Additionally, the Pi Network has been releasing new supplies onto exchanges, which has decreased the relative value of each token already in circulation. In the volatile cryptocurrency market, prices are highly sensitive to changes in supply and demand. The overall bearish sentiment in the crypto market has also led traders to avoid riskier, unproven networks.

Despite these challenges, there are two reasons why some analysts believe Pi could be worth considering. The first is the rise in whale activity on the Pi Network. Whale-sized purchases of any cryptocurrency are generally seen as a bullish signal. For instance, a $14 million purchase of Pi tokens on OKX and subsequent transfer to private wallets could indicate long-term bullishness from a crypto whale. Additionally, Pi blockchain data from Pi BlockExplorer reveals a major buyer purchasing around 290 million Pi tokens over a three-month period, valued at approximately $150 million at the time of the report.

The second reason for optimism is the current all-time low price of Pi, which presents a potential value trade opportunity. According to the principle of mean regression in statistical science, a data trend in stock or crypto prices with enough volume over a long enough time period tends to return to its average trend line after moving away from it. Given Pi's rapid strides in a short time on exchange markets and its similarities to other cryptocurrencies that have delivered high returns, some analysts see this as a potential reason to be bullish on Pi. If Pi performs like other major altcoins, it could present a significant opportunity for investors.