Pi Network faces a critical choice: Can the Linux Node upgrade and protocol v23 release turn around the price decline? | Pi coin price prediction

The Pi Network is at a critical node for technical upgrades and market testing, with its native Token PI currently trading at $0.3483, a daily rise of 1.6%, and a market capitalization of $2.77 billion, but still down over 85% from its historical high of $2.99. The project party's latest release of the Linux Node version and protocol v23 upgrade aims to enhance the network's Decentralization architecture, while on-chain KYC verification users have surpassed 14.8 million. However, the technical indicators show that the PI price is still oscillating in the range of $0.33-$0.37, with the 50-day MA at $0.3514 forming short-term resistance. Analysts point out that if it holds the $0.33 support, it may rebound to $0.46, while losing $0.32 could face new low risks.

Technical Upgrade and Ecological Expansion

The latest release of the Linux Node version by Pi Network addresses long-standing system compatibility issues. Previously, the node only supported Mac and Windows systems, forcing Linux users to rely on custom builds. The launch of the official Linux Node allows exchanges and service providers (many of whom have connected to Pi using custom Linux nodes) to adopt standardized software, streamline update processes, enhance network stability, and reduce reliance on custom builds.

The simultaneous protocol upgrade (from v19 to v23) is a more strategically significant move. This upgrade is based on the Stellar protocol v23, and the key features introduced include:

• On-chain KYC Authority: Enforcing KYC directly embedded in the blockchain, supporting the future delegation of verification authority to trusted organizations, promoting a community-driven verification model while remaining compliant.

• Phased deployment: The upgrade will be carried out in phases in the order of Testnet1, Testnet2, and Mainnet, during which there may be planned interruptions to blockchain services.

• Industry standard alignment: Aligning the Pi Network with emerging industry standards such as ERC-3643, which embed compliance logic into on-chain tokens.

Price Dilemma and Market Sentiment

Despite the continuously strengthening technical foundation, the PI Token still faces severe market challenges:

• Continuous selling pressure: Centralized exchanges hold over 405 million PI Tokens, with 1.616 million Tokens unlocked in August alone, creating significant selling pressure that puts pressure on the price.

• Technical indicator signals are mixed: the MACD indicator shows a bearish crossover, while the Squeeze Momentum indicator displays volatility compression, which is an early warning that the price may further fall. However, some analysts have observed that the RSI has formed a bullish divergence with the price lows, and the last time this signal appeared, the price rose by about 40%.

• Decline in social heat: According to Santiment data, at the end of August, Pi's social dominance and social volume both declined, leading to a decrease in market attention.

Future Outlook and Challenges

The future development of Pi Network depends on several key factors:

1. Mainnet migration and token unlocking: The long-term value of the project largely depends on its mainnet migration progress. Currently, there are only 7.95 billion PI coins in circulation, with a total supply of 100 billion coins. Addressing issues such as KYC backlog is crucial for unlocking a large number of locked tokens and their long-term value.

2. Exchange Listing and Liquidity: The market is generally concerned about whether PI can be listed on more mainstream exchanges, especially the speculation around its listing on Coinbase. Valour Pi ETP is already trading on the Swedish Spotlight stock market, providing traditional investors with a regulated investment channel.

3. Practical Utility and Ecosystem Construction: Compared to projects like Remittix (RTX) that focus on solving practical issues such as low-cost cross-border payments, Pi Network urgently needs to demonstrate its real-world application scenarios. The development of its ecosystem, such as incentivizing developers to build dApps on its open-source platform through Pi Hackathon 2025, is crucial for attracting institutional capital.

Investor Strategy Recommendations

For investors interested in the Pi Network, the following strategies should be considered:

• Short-term traders: closely monitor the battle results at the support level of $0.33 and the resistance level of $0.3514 (50-day MA). An effective breakout above the 50-day MA accompanied by increased trading volume may indicate a short-term bullish outlook; conversely, if it falls below $0.33, risk control should be considered.

• Long-term investors: Focus on the progress of mainnet migration, news of listings on major exchanges, and the implementation of actual dApp applications within the ecosystem. These substantial advancements in fundamentals are key to the long-term recovery of prices.

• Risk control: It is essential to be aware of the high risk of investing in PI, as its price volatility is significant. Setting clear stop-loss points, reasonably controlling position sizes, and waiting for trend confirmation are crucial.

Conclusion

Pi Network is at a critical turning point. The release of Linux nodes and the Protocol v23 upgrade demonstrate the project's commitment to technical infrastructure and compliance development, with over 14.8 million verified users and on-chain KYC embedding laying the foundation for its future growth.

However, challenges such as the continuous pressure on token prices, the huge selling pressure from exchanges, and unclear actual utility still exist. Whether its future value can be realized depends on whether technological upgrades can effectively promote the mainnet launch, ecological application implementation, and gain broader support from exchanges.

Investors should remain cautious in the current market uncertainty, closely monitoring the defense of the key support level at $0.33, as well as the substantial progress of the project's fundamentals.