- Pi Network’s price has plummeted by 74% due to limited exchange listings, declining investor demand, concerns over tokenomics, and upcoming token unlocks that could flood the market.
- However, technical indicators like the falling wedge pattern and oversold RSI suggest a potential rebound if market conditions improve.
The Pi Network price has been on a sharp decline, sparking concerns among investors. Despite the broader crypto market experiencing a rebound, Pi coin has continued to struggle, hitting its lowest level since February 2022. With a dramatic 74% drop from its all-time high, the big question remains: Can Pi coin recover?
Why Has Pi Coin Crashed?
Several factors have contributed to the ongoing slump in Pi Network’s value.
1. Limited Exchange Listings
One of the main reasons behind Pi coin’s decline is its restricted availability on major cryptocurrency exchanges. While platforms such as OKX, Gate.io, and Bitget support Pi trading, leading exchanges like Binance, Coinbase, and Upbit have yet to list it. The absence of these major players limits Pi’s accessibility to a broader market, reducing its adoption and trading volume.
2. Declining Investor Demand
Investor interest in Pi Network has also waned significantly. Data from CoinGecko shows that its 24-hour trading volume has dropped to just $213 million, a stark contrast to the $1 billion it averaged during its peak in February and early March. The reduced demand has added downward pressure on the price.
3. Concerns Over Tokenomics
Pi Network’s tokenomics structure has raised concerns among traders. Data from Pi Scan indicates that a significant portion of the supply is concentrated in a few wallets controlled by the Pi Foundation. These wallets collectively hold Pi coins valued at approximately $50 billion, raising fears about centralization and market manipulation.
4. Fear of Upcoming Token Unlocks
A looming threat for Pi holders is the scheduled unlocking of over 1.6 billion new tokens within the next 12 months. This impending increase in supply has triggered panic selling, as investors anticipate further downward pressure on the price.
Can Pi Coin Rebound?
Despite the bearish sentiment, there are technical indicators suggesting that Pi coin may have a chance for a recovery.
- Technical Indicators Show Potential for Reversal: The Relative Strength Index (RSI) has entered oversold territory, which often signals a potential bounce. Additionally, the MACD (Moving Average Convergence Divergence) indicator remains below the zero line but could shift if buying momentum returns.
- Formation of a Falling Wedge Pattern: The Pi coin chart has formed a falling wedge pattern, a bullish signal that indicates a potential price breakout. If this pattern holds, Pi coin could attempt to retest its previous resistance level at $1.8042, representing a possible 125% price increase from its current value.
While Pi Network is facing significant headwinds, the possibility of a rebound cannot be ruled out. The key factors to watch include potential exchange listings, changes in investor sentiment, and the coin’s ability to hold key technical support levels. If market conditions improve, Pi coin could see a reversal, but for now, investors should proceed with caution and stay informed about further developments in the crypto space.