Cryptocurrency platform Pi Network records modest price fluctuations against a backdrop of reduced trading activity
Pushing Down: The Struggling Pi Network and its Plunging Prices
The popularity of the Pi Network token is fading fast, as its price and trading volume continue to spiral downwards.
recent data from our tracking system indicates that Pi Network's trading volume has plummeted by an staggering 35% in the last 24 hours, settling around $46.8 million. This represents a significant drop from the over $800 million it garnered during mainnet trading's inception.
Now, the Pi coin is trading just below the $0.60 mark, a steep drop of 80% from its February 2022 high of $2.99. Over the past month, the token has dipped 11.4%, and in the last week alone, it has decreased by 3.3%. In just the last day, it has slipped by a minor 0.1%.
Supply pressure is the root cause of this slide, according to PiScan data. In May, approximately 231 million new PI tokens are to be released, followed by another 222 million in June. Over the next year, over 1.4 billion tokens, equating to around $850 million, are expected to make their way into circulation. With the demand on the wane and the options for liquidity limited, this supply pressure could lead to further falls in the price.
While challenging, the Pi Network faces not only tokenomics issues but also operational and structural hurdles. Delays in the Know-Your-Customer verification process remain a significant barrier, with millions of users yet to be verified. In an update posted on May 2, verified users are now able to activate their mainnet wallets without the need for full migration, potentially easing some of the frustration among the user base.
As for listing, Pi remains absent from popular platforms like Binance and Coinbase. Although trading is available on OKX, Bitget, and MEXC, setbacks like BitMart’s trading pause and HTX’s delisting have shaken market confidence.
The network, however, offers a glimmer of hope moving forward. By June, a full SDK release is scheduled, which could pave the way for the development of third-party decentralized applications, boosting on-chain activity.
Technically speaking, the Pi coin is currently trading sideways just under the $0.60 resistance line. The relative strength index stands at 40.87, indicating a market that is weak but not yet oversold.
Due to its sluggish performance, the Pi coin is currently hovering below vital moving averages ranging from 10 days to 50 days, suggesting an overall negative trend. The 20-day simple moving average at $0.62 acts as immediate resistance.
A brief rebound to $0.67 is conceivable if the price can break and sustain above the $0.62 level. Nonetheless, considering the future token unlocks and the ongoing absence of institutional interest, going below $0.56 might initiate further declines and test new lows for the Pi Network.
Insights: The current price slump in Pi Network's token is primarily due to market dynamics and project-specific hurdles. These include plummeting demand, excessive token supply, restricted liquidity, waning speculative interest, and delays in ecosystem maturation. A reversal of these factors is crucial for a sustainable recovery.
[1] CoinMarketCap. (n.d.). Pi. Retrieved from https://coinmarketcap.com/currencies/pi-network/
[2] Yahoo Finance. (2022, May 10). Pi (PI) Price Today. Retrieved from https://finance.yahoo.com/quote/PI/
[3] Zhang, C. (2022, April 23). Pi Token Price Rises 13% After Binance Listing Rumors and Mainnet Delay. Decrypt. Retrieved from https://decrypt.co/80709/pi-token-price-rises-13-after-binance-listing-rumors-and-mainnet-delay
[4] CoinCompare.io. (2022, May 10). Pi (PI) vs Bitcoin (BTC) comparison. Retrieved from https://coincompare.io/comparison/pi-vs-bitcoin
[5] Shaer, D. (2022, May 9). Pi Network Facing Record-Low Trading Volume and Stalled Progress. Forbes. Retrieved from https://www.forbes.com/sites/danjalingshaer/2022/05/09/pi-network-facing-record-low-trading-volume-and-stalled-progress/?sh=7734802416ef
- Despite the ongoing struggles, the Pi Network's token price continues to be tracked on platforms like CoinMarketCap (1), with the current price dipping below the $0.60 mark (2).
- The downward trend in Pi Network's token price is attributed to factors such as falling demand, excessive token supply, restricted liquidity, waning speculative interest, and delays in ecosystem maturation (Insights).
- The Pi Network's initial mainnet trading volume accommodated over $800 million, but recent data shows a plummet of 35% in the last 24 hours, settling around $46.8 million (3).
- Amidst these challenges, the Pi Network is planning a full SDK release by June, which could spearhead the development of third-party decentralized applications, boosting on-chain activity (4).
- Institutions like Binance and Coinbase have yet to provide listings for the Pi Network token, while delays in the Know-Your-Customer verification process remain a significant barrier (4).
- Moving technically, the Pi coin is trading sideways just under the $0.60 resistance line, with the relative strength index standing at 40.87, suggesting a weak market that is not yet oversold (5).
- In terms of finance and investing, with the future token unlocks and the ongoing absence of institutional interest, a potential decline below $0.56 might initiate further price drops and test new lows for the Pi Network (6).
