Pi Network’s native token has stolen the show in the cryptocurrency markets with a massive price surge that drove it to a weekly high of roughly $0.10.

This is rather unexpected given the asset’s latest price performance, which included dumping to several consecutive all-time lows. The question is whether this is a profound recovery or another dead-cat bounce.

PI Pumps Hard on Sunday

CryptoPotato has repeatedly reported over the past week or so the adverse price developments around Pi Network’s PI token. The asset broke below the key $0.10 support last weekend, and the bears took complete control of the market. In the following days, they pushed it below $0.09 and $0.08.

PI rebounded only after it dumped to $0.07, which turned out to be a strong support. The token marked a new all-time low, which meant that it had plunged by over 97% since its ATH over a year ago, but rebounded immediately.

As reported yesterday, it showed some resilience and climbed above $0.08. It remained there for about 24 hours before it went on the aforementioned rally today. It skyrocketed by almost 20% and is now close to $0.10 for the first time in a week. This has become a key resistance level, which has to be reclaimed before the asset has any chance of a bigger rebound.

Recovery or Dead-Cat Bounce?

Although today’s rather unexpected but impressive surge has given some hope to the bulls, PI’s history has repeatedly shown that it’s not that simple, and the hype could come to an end soon.

The asset has posted similar gains on numerous occasions in the past, especially after prolonged downturns. Once it becomes the top performer, though, it crashes and burns to its starting level or even lower within days. The latest such example was in mid-March when it rocketed from $0.20 to $0.30 during the Kraken-listing hype.

It was rejected immediately and slumped below $0.20 within 72 hours. It has been unable to reclaim its former glory since then, and the recent crash to $0.07 only proved that. The Pi Network investors and believers would have to wait and see if this rally now is any different.

Source: CryptoPotato