In the last 24 hours, Bitcoin and Ethereum have both declined by 2%-3%, while Pi Coin is actually the native coin of the Pi Network, and has dropped much of its value, crashing below the $1 level. With a sharp 24% loss over the last 24 hours, investors are uncertain about the viability of this coin. Currently, the token is the #23 coin on CoinMarketCap, with a market capitalization of $6. 28 billion.
The recent bad news for token has had quite several influences. From late exchange listing to deflationary pressures, here’s a list of what’s driving recent downturn
1. Binance and Coinbase Listing Delays
Investors were anticipating the listing of coin on some of the leading exchanges like Binance and Coinbase. Unfortunately, due to a lack of official confirmation and delays the demand has reduced.
2. Shrinking Supply and Deflationary Pressure
Pi Network has done some measures in regards to decreasing circulating supply:
Transaction fees: More than 528, 671 tokens have been permanently burned via transaction fees at a rate of 3, 000–4, 000 tokens per day.
KYC-Related Token Burns: Users who failed KYC verification (KYC) have their tokens converted to a new mix which resulted in the burn of some 60. 8 billion tokens in total.
Noting that not just deflationary mechanisms work but also that broader market sentiment prevails over the benefits of shortages in supply this has continued price decreases.
3. Declining Trading Volume
The trading volume for the digital currency that traded today is currently $366 million in total. That’s a loss of 37%. Low volumes indicate reduced investors’ interest, which makes recovery more difficult. If the volume doesn’t increase, the Coin will have a difficult time maintaining this level above critical support.
The token continues to rattle on a roller coaster ride, but analysts say key support and resistance levels could point to the next move
Support Level: If altcoin does not maintain the $0.87 support level further decline would put towards to $0.60.
Resistance Level: If reversal happens, the altcoin can go up to $1.20 and we need a lot of bullish momentum to try to break over $1.20.
Markets are currently market mixed with investors keeping an eye on price action for signs of a return.
Pi Network has been under fire for being similar to Multi-Level Marketing (MLM) and not decentralized, although several counterarguments — made by experts — have suggested the opposite.
Mining Model redefines mining in terms of user engagement and not high-power computational tasks.
Decentralization Plans is still in a permissioned mode, but there's a plan to go deeper in decentralization after the mainnet is set up.
Comparative to Stellar: Since the design is based on Stellar’s framework, the token adopts that design but doesn’t try to make it a super advanced programmable device.
But, although they might have reservations, Pi Network's move is in line with similar projects that shifted their focus from centralized to decentralized.
Pi dramatic drop has fueled Fear, Uncertainty, and Doubt (FUD) among investors. Sentiment has declined by 80% in a single day, with some traders alleging manipulation and panic selling. The ongoing market uncertainty suggests that Pi’s recovery hinges on increased adoption, exchange listings, and improving investor confidence.
On the 4-hour timeframe, the altcoin shows a descending wedge pattern, which typically indicates a potential bullish reversal. However, the price has recently broken below the lower trendline, suggesting further weakness in the short term. Key Fibonacci levels highlight critical support and resistance areas, with the price currently trading below the 0.618 level at 1.2993 USDT. The next major support is around 0.7263 USDT at the 0.786 Fibonacci level.
Technical indicators reinforce the bearish sentiment, as the RSI is at 18.95, signaling an oversold condition, which could lead to a short-term bounce. Meanwhile, the MACD remains bearish, confirming the ongoing selling pressure.
Source: TradingView
While the altCoin faces short-term bearish pressure, its long-term prospects depend on network growth, exchange listings, and adoption. Investors should keep an eye on market trends and major developments that could influence price movements.
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