Pi coin price could be positioning for a breakout as the total supply of tokens held on centralized exchanges dropped sharply today.

According to data from crypto.news, Pi Network (PI) token rallied 18% to an intraday high of $0.26 on Thursday, Nov. 20, afternoon Asian time before settling at $0.25 at the time of writing. At this price, the token lies 36% above its lowest point in October. Still, it remains far below its all-time high of $2.99 reached in February this year.

Pi coin price spiked as the total supply of tokens held on centralized exchanges fell sharply today.

Per data from PiScan, the total balance of PI tokens held by the five centralized exchanges it is currently listed on has dropped to around 426.3 million, worth approximately $107.6 million, after experiencing net outflows of 1.9 million tokens over the past 24 hours.

Such a large amount of tokens leaving exchanges typically signals buyer dominance that can help build upward price momentum as available supply shrinks.

Investor demand for the token experienced a sharp uptick after Pi Network revealed a whitepaper outlining its compliance with MiCA regulations. This marks a major step forward for the project as it could open the door to trading the PI token across regulated exchanges in the European Union and the wider European Economic Area. 

Through this compliance, the project plans to pursue listings on licensed and regulated trading platforms once official approvals are granted.

Just days ago, the Pi Network team also announced a significant upgrade to Pi App Studio, its AI-powered app development platform that will now allow non-technical users to create, modify, and run online applications more easily by enabling them to download their app’s source code, make custom edits, and re-upload.

Looking ahead, investors are also closely watching the progress on Pi Network’s decentralized exchange and automated market maker, which are currently in testing. These developments could signal the network’s shift from a closed pilot ecosystem to a fully functioning blockchain economy with decentralized trading infrastructure.

Pi coin price analysis

On the 4-hour chart, Pi coin has confirmed a breakout from the upper side of a descending parallel channel pattern, which forms when an asset’s price alternates between lower highs and lower lows while trading within two downward-sloping trendlines. 

A breakout from the upper boundary typically signals a shift in momentum and is often followed by a bullish trend, whereas a breakdown below the lower boundary tends to confirm a continuation of the prior downtrend.

Pi coin price has also moved above the 50-day exponential moving average, a development that suggests growing buying interest and a possible shift toward sustained upward movement.

Additionally, the Aroon Up indicator showed a reading of 100% while the Aroon Down was at 57%, a telltale sign that a strong uptrend may be forming, as bulls continue to maintain their grip over the market.

As a result, Pi coin is likely to rise toward the $0.47 level next, which represents an 88% move above its current price. However, if the bullish momentum begins to fade, Pi coin could fall back within the descending channel pattern and potentially resume its downward trajectory in the short term.