The Pi Coin price dropped on Tuesday as the recent comeback took a breather, with investors starting to take profits.

Pi Network (PI) token was trading at $1.1475 at press time, down 31% from its highest point on Monday. This retreat has brought its market cap to $8 billion, making it the 19th biggest coin in the industry.

Pi Coin price Elliot Wave points to a comeback

The Elliott Wave is a popular analysis approach that identifies five stages assets go through during a bull market. The first, third, and fifth phases of the impulsive Elliott wave are usually bullish, with the third one being the longest. On the other hand, the second and fourth waves are usually corrective phases. 

The eight-hour chart shows that the Pi Network price rallied from this month’s low of $0.5572 to a high of $1.6638, a 200% surge, as we had predicted here and here. This rally formed the first phase of the Elliott Wave as it ended at the 50% Fibonacci Retracement level.

The coin then pulled back and bottomed at $0.9105 on Tuesday, forming the second Elliott Wave. Therefore, if this pattern works, it means that it may surge to the 78.60% retracement point at $2.455, up 116% from the current level.

The other potential bullish catalyst for the Pi Network is that it is slowly forming a bullish pennant pattern. This is a common pattern comprising a vertical line and a symmetrical triangle. A bullish breakout happens when the two lines of the triangle near their meeting point. 

Pi Network price chart | Source: crypto.news

Potential Pi Network catalysts

The main reason why the token may move into the third phase is that the developers have teased a major announcement at the Consensus event in Toronto.

There are a few potential news events that may push its price higher. The most notable one would be an exchange listing by a major company like Binance, Coinbase, Upbit, or HTX. If the upcoming news is a listing, odds are that it will be HTX, a company that has sent several cryptic X posts with a Pi logo, as shown below.

Another major news item could be an initiative to incentivize developers to build applications using Pi Network’s technology. Most of the biggest blockchains like Avalanche (AVAX), Sonic (S), and Cronos (CRO) have already done so.

The developers confirmed in an X post that the announcement will focus on the ecosystem. One of the main criticisms of the Pi Network is that it is a ghost chain with little developer activity. Any announcment that would fuel growth and activity in the network, leading to higher fees and token-burning activity, would be well received.By highlighting the “ecosystem” in the teaser, the Core Team likely ruled out an exchange listing, as such announcements typically originate from the exchanges themselves.

Pi Network may also aim to ease the tensions around its token unlocks by announcing a big burn. Such a move would be possible as the Pi Foundation holds billions of tokens in its addresses. It would help reduce concerns that holders have regarding the token unlocks.