- Pi Coin has experienced a significant drop in price, partly due to the extension of the KYC verification grace period until December 31st, delaying the network’s transition to an open mainnet.
- With a bearish technical pattern forming, the coin may drop to $37 unless market conditions improve or the network gains momentum towards its mainnet launch.
The Pi Network, a cryptocurrency that has caught the attention of many in the digital asset space, is currently facing pressure on its price. Pi Coin, the native token of the network, recently saw a significant drop from its peak in November, retreating to around $48.63, a 50% decrease. This decline comes amidst the latest developments surrounding the network’s transition to its open mainnet.
KYC Grace Period Extended: A Double-Edged Sword
One of the key catalysts for the recent price dip is the decision by Pi Network developers to extend the Know Your Customer (KYC) grace period until December 31st. KYC verification is a critical process that ensures only legitimate users, or “pioneers,” are allowed to access the mainnet and exclude bots from migrating their tokens.
Although this extension gives more pioneers an opportunity to verify themselves, it also delays the much-anticipated transition to the open network, where coins can be freely traded and exchanged for fiat currencies. In the current state of an enclosed mainnet, Pi Coin’s utility remains restricted, which limits its potential for growth.
The Path to Open Network: A Slow but Steady Process
Pi Network is slowly working its way towards launching its open mainnet, but there are still a few essential steps left. KYC verification is the last major hurdle, with the developers insisting on a December 31st deadline for its completion.
In the meantime, the Pi Network ecosystem is growing, with over 27,000 sellers already registered in the network and more than 50 mainnet-ready apps. These developments show promise for the Pi Coin’s future utility. However, the market remains uncertain, and external factors such as US cryptocurrency regulations and the fluctuating prices of digital assets could also impact the network’s success.
Pi Coin Price Analysis: Is a Drop to $37 Inevitable?
On the technical side, Pi Coin’s price chart reveals concerning patterns. The coin recently formed a double-top pattern between $91 and $100 and has since dropped below the 50-day Exponential Moving Average (EMA). This suggests a bearish outlook for Pi Coin in the short term.
Moreover, Pi Coin has formed a bearish pennant pattern, which often precedes a price drop. If this pattern plays out, the price could fall to around $37, which represents the lowest swing point from mid-October. This bearish scenario would be confirmed if Pi Coin drops below its ascending trendline.
The Optimistic Scenario: A Rebound to $65?
On the other hand, there is a possibility of a rebound if Pi Coin manages to find support above the trendline. A move back up to $65, the highest point in November, is a potential scenario if the market sentiment improves and the network’s transition to the open mainnet gains momentum.
Conclusion
The Pi Network faces a crucial moment as it moves towards an open mainnet. While the extension of the KYC verification period may provide more time for users to participate, it also delays the potential for Pi Coin to be traded openly. As the price remains volatile, investors should closely monitor key developments in the network and broader market conditions. Whether Pi Coin drops to $37 or recovers to $65 will depend largely on the success of the KYC process and external market factors.
