Pi Network (PI) bottom flash accumulation trend: Is the recovery wave about to begin?

On September 19, the price of Pi Network (PI) continued to oscillate narrowly above $0.3500, indicating a sustained accumulation trend. This period not only ended the previous downward momentum but also laid the foundation for shaping future trends. With the price movement in sync, Pi Network successfully upgraded to Stellar protocol version 23, bringing new expectations for future development. The market is closely following whether it can break through the current consolidation range and start a new pump cycle.

1. Pi Network Testnet Upgrade: Paving the Way for Smart Contracts

The Pi Network team recently announced that it has successfully completed the upgrade of Testnet 1, upgrading the blockchain from Stellar version 19 to version 23. This is an important milestone, and the development team will next focus resources on updating Testnet 2, with the ultimate goal of upgrading the mainnet.

According to Coinphoton, the new version is expected to pave the way for the deployment of smart contracts, which is crucial for the ecological development of the Pi Network. However, the community has not yet received a detailed timeline, and the development team has only indicated that there may be some network interruptions during the deployment phase.

Although Testnet 1 has completed its upgrade, investor sentiment towards Pi Network has not significantly improved, and the PI price remains around 0.3500 USD. However, the progress of Testnet 2 is expected to bring the project closer to a mainnet that supports smart contracts – which could become a strong driving force for PI's value.

2. PI price movement analysis: Accumulation signals in the horizontal range

(Source: Trading View)

As of the writing of this article on September 19, the PI remains above $0.35 after three consecutive candlesticks, reflecting low volatility. The price chart shows that the token is currently trading within a narrow range, with a resistance level at $0.4000 and a support level around $0.322.

· Keltner Channel: After the previous bearish phase, it has narrowed, strengthening the accumulation signal, indicating that market volatility has significantly decreased.

· Relative Strength Index (RSI): Flat in the neutral zone at 49, indicating a balance of buying and selling power, with market sentiment lacking a clear direction.

· Accumulation/Distribution Line (ADL): Increased from -345 million on Sunday to -289.83 million, reflecting a decrease in selling pressure.

Potential Breakthroughs and Risks

In a positive scenario, if PI closes above the resistance level of $0.40, a series of lower highs on the daily chart will end, confirming a breakout from the accumulation zone. PI may then move towards $0.5032—this level was tested on July 22.

On the contrary, if the price breaks the support level of $0.322, the previous bearish channel breakout signal will be invalidated, thereby opening the risk of a continuation of the downward trend, pulling the price back to the important psychological level of $0.30.

3. Market Outlook: Expectations for Smart Contracts and Mainnet Launch

The successful upgrade of the Pi Network testnet, especially paving the way for smart contract deployment, is a key step in its ecological development. Although the current market sentiment remains cautious and the PI price is in an accumulation stage, if the mainnet can effectively support smart contracts, it will greatly enhance its application potential and market value. Investors should closely follow the subsequent upgrades of testnet 2 and the mainnet, as well as the specific timeline released by the development team.