Will the Stellar protocol 23 upgrade boost Pi Network price?

Pi Network price remains in a steep free fall that has cost long-term investors billions of dollars. 

Pi Coin (PI) was trading at $0.3410 today, August 6, just above this month’s low of $0.3236. A potential catalyst for Pi is the upcoming Stellar Protocol 23 upgrade.

Stellar Protocol 23 upgrade impact on Pi coin

Pi Network price has been in a sustained downtrend after peaking near $3 in February. The crash followed an increase in token supply due to daily emissions, while demand weakened.

The token has largely ignored major announcements, including the launch of Pi Network Ventures and Pi AI Studio. Pi Network Ventures is a $100 million fund aimed at allocating capital to qualified projects in the ecosystem.

Pi AI Studio is a recently launched product that allows users to build and deploy AI applications such as chatbots. Developers aim to position Pi as the leading platform for decentralized AI solutions.

A potential catalyst for Pi Coin is the upcoming Stellar Protocol 23 set to go live in September. The upgrade will bring enhancements such as faster transaction speeds, smart contract capabilities via Soroban, and bridging to other blockchains.

This upgrade could benefit Pi Network, which is built on the Stellar Consensus Protocol and its core infrastructure. According to Dr. Altcoin, Pi is currently in version 19, and will likely migrate to 23 directly. 

Such a migration would strengthen the Pi ecosystem, particularly through improved cross-chain compatibility. However, it is unlikely that Stellar’s upgrade alone will trigger a price surge in Pi Coin. A more probable catalyst would be a tier-1 exchange listing.

Pi Network price technical analysis

The 12-hour chart shows that Pi Network price has plunged over the past six months and is hovering near its all-time low. It has broken below key support at $0.3927, its lowest level in both June and April, invalidating a previously formed double-bottom pattern.

Pi Coin is now trading near the lower boundary of a descending channel and remains below all key moving averages. This setup suggests a high probability of further downside, potentially pushing the token below support at $0.300.

However, shorting Pi remains risky due to the possibility of a tier-1 exchange listing, which could trigger a short squeeze.