Applying Elliott Wave Analysis to Pi Network: A Swing Trader's Pers...

Though the Pi Network has been in existence for six years now, the token is traded on selected crypto exchanges for just 21 days. Given its relatively short trading history, providing technical analysis is a challenge.

As such, analyzing PI using the Elliott Wave Principle (EWP) may not provide sufficient information for accurate wave counts. However, we can still observe some initial patterns and trends using smaller waves with a time frame from days to weeks. The relevant waves would be the minute and the minuette.

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The table below shows that a minute wave's time frame consists of days to two weeks, whereas the minuette wave consists of a few days to a week. From this perspective, a minute wave 1 should have 5 minuette waves, and a minute wave 2 has three minuette waves.

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Let us see how the above analysis applies to the current chart of Pi.

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So far, Pi traded for 21 days and made two minute waves: Wave 1 and Wave 2. Higher waves, such as minor and others, are inapplicable here.

From February 20 to February 26, minute wave 1 was completed, and it has 5 minuette waves, three impulse waves, and two corrective waves.

When I saw Pi struggling to break the $3.00 resistance on February 27, I decided to sell 149 Pi at $2.94. Since then, I have been waiting for the formation of minute wave 2 with three minuette waves. Once wave 2 is completed, that signals my re-entry.

The problem is that I did not follow my analysis. You know, in EWP, alternative interpretations exist. This is not a game of certainty but of probability. I got impatient from waiting. I mistakenly thought that $1.50, the floor price on March 2, was the completion of wave 2. And so I observed the price for 3 days. Thinking that the floor price had been established, I bought 100 Pi on March 5 at $1.80, only to see four days later that my entry was wrong. My original analysis was correct, but I doubted it. The good thing is that I still had a reserve capital and bought 50 more Pi at $1.44 on March 10.

If I stuck with my original analysis, the ideal initial entry would be $1.52 using the 50% Fibonacci retracement, and in case that support broke down, the second entry would be at $1.17 using the 61.8% Fibonacci retracement.

When it comes to Hive, I am more of a position trader on both MEXC and Bitget, but when it comes to the Hive blockchain itself, I am a long-term microinvestor. With Pi, my approach is different. I would like to take advantage of the current sentiment about this newly launched token, and that's why my posture here is more of a swing trader.

I hope the table below helps you understand the different trading and investing stances in crypto markets.

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If you have been observing the price of Pi for the last three weeks, you will see an unusual price volatility. It has experienced significant fluctuations since its launch, with prices ranging from a low of $0.6157 to a high of $2.99.

Applying EWP, given the limited data, any analysis should be considered tentative and preliminary.

For swing traders like me, caution is of utmost importance. I have been reminding myself not to commit the mistake of taking my analysis as something certain that would make me do all out. No problem if you are not trading on borrowed money.

In my case, Pi gave me a $668.00 or PHP 38,319.00 capital plus the 300 Pi I have been holding since the launch, so the fear of losing money is minimal. I started with nothing in this network, so there is nothing to lose except the four years I spent clicking that lightning icon every 24 hours.

In conclusion, if we compare the current chart of Pi to that of the overall picture of Elliott Wave Theory with higher waves like minor, intermediate, and primary, we could say that since Pi has now just completed minute wave 2, a potential minute wave 3 rally is underway. We could not even see that minute wave 3 in the overall picture, for the lowest wave below is a minor wave 1 with a time frame of several weeks to a few months.

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If you are curious about Pi Network, you can download the app by following this link. You also need to have a Bitget account where you can transfer your Pi from your Pi wallet to a crypto exchange and exchange it for your currency.