Pi’s Protocol Leap Fails to Spark Bullish Market Momentum

Pi Network has announced a significant update to its blockchain infrastructure, transitioning from protocol version 19 to version 23, a customized iteration of the Stellar protocol. This upgrade introduces enhanced functionality and control mechanisms for the network, supporting improved scalability and user autonomy [1]. The migration is being implemented gradually, beginning with the Testnet1 environment, and is expected to progress to Testnet2 and finally the Mainnet. The phased approach is designed to ensure smooth integration and minimize disruptions for users and partners [2]. While the upgrade is expected to strengthen Pi Network’s decentralized infrastructure, it may also involve planned outages during the transition period. Such outages will be communicated in advance to allow for preparations by third-party services and network participants [1].

In parallel with the protocol upgrade, Pi Network has released an official Linux Node version, expanding node support beyond existing platforms such as Windows and macOS. This move is a direct response to long-standing community requests and is expected to enhance the accessibility and inclusivity of the Pi ecosystem, particularly for developers and technically inclined users. The Linux Node allows for more efficient self-management of protocol updates and enables auto-updates from the Pi Network, offering greater flexibility compared to previous custom builds [1]. This development is particularly relevant for partners and third-party services that rely on Linux-based infrastructure, as it allows for a more standardized and stable node experience.

One of the key features of the upcoming protocol upgrade is the decentralization of KYC (Know Your Customer) authority within the Pi blockchain. Previously, KYC verification was centralized through the native Pi solution, but the new version allows for the distribution of this authority to trusted entities. This change supports the vision of a more decentralized and community-driven KYC process while maintaining compliance standards. The move aligns with broader industry trends toward embedded identity verification, as seen in standards like ERC-3643 [1]. The Pi Network has already achieved a milestone of over 14.82 million KYC-verified users on its Mainnet, making it one of the largest KYC-verified blockchain networks globally.

Despite these technical advancements, market sentiment for Pi Coin (PI) remains weak, with the token trading at $0.34 as of the latest data. This price is below its 20-day exponential moving average (EMA), which currently forms a dynamic resistance level at $0.36. The 20-day EMA is a key technical indicator that highlights short-term momentum; when a cryptocurrency falls below this level, it often signals increased selling pressure and weakening support. The current situation suggests that Pi Coin is at risk of further declines, potentially revisiting its all-time low of $0.32 [2].

Technical indicators further confirm the bearish trend. The Chaikin Money Flow (CMF), which measures capital inflows and outflows, is currently at -0.11, indicating weak inflows and strong sell-side pressure [2]. Additionally, the Bull Bear Power (BBP) indicator has turned negative, reinforcing the dominance of bearish forces in the market. Historical data shows that a similar shift in BBP in late August was followed by a sharp price decline of over 30%. With these signals in place, the market appears to be in a prolonged bearish phase, with little immediate relief in sight [4].

Investors and market participants are closely monitoring key support and resistance levels to assess potential turning points. A daily close above $0.36 would be critical for Pi Coin to regain momentum and potentially push toward $0.40 [2]. However, given the current technical landscape and weak capital inflows, the probability of such a recovery in the short term is low. As the protocol upgrade progresses, the market will need to see stronger demand and improved sentiment for Pi Coin to break free from its bearish trajectory.

Source:

[1] Linux Node Release and Upcoming Protocol Upgrades (https://minepi.com/blog/pi-linux-node/)

[2] Pi Price Holds Flat Despite Network's Move to Version 23 (https://beincrypto.com/pi-price-flat-despite-pi-network-version-23-upgrade/)

[3] Pi Network Set for Major Upgrade, Yet Market Sentiment ... (https://blockonomi.com/pi-network-set-for-major-upgrade-yet-market-sentiment-remains-low/)

[4] Pi Network Keeps Plummeting: Is It Time to Sell Everything? (https://investx.fr/en/crypto-news/pi-network-keeps-plummeting-time-to-sell-everything/)

[5] Pi Coin Price Eyes New Lows as Bearish Death Cross Nears (https://coinstats.app/news/b81e79a9ab0cb6dbf84efe55ddddd75130f3c48b1e3da168bce57b126fe99385_Pi-Coin-Price-Eyes-New-Lows-as-Bearish-Death-Cross-Nears/)