The Pi Network continues to grapple with a prolonged bear market and is encountering considerable challenges as Pi Day approaches.
Pi Coin (PI) has declined by more than 45% from its peak in February, which has led its market capitalization to exceed $11.7 billion and its fully diluted valuation to reach $164.35 billion.
This Friday, the token is set to attract attention during the celebration of Pi Day, which honors the mathematical constant π (pi). Observed on March 14 each year, the date corresponds to the value of pi (3.14), and the event might generate heightened interest in the token.
Nevertheless, the Pi Network is confronted with various potential risks that could influence its price in the near future.
Firstly, despite Pi Network’s rise to prominence as one of the largest coins in the cryptocurrency market, it remains unlisted on major tier-1 exchanges. Binance, which conducted a popular poll regarding the Pi Network listing, has yet to provide a confirmation on when this listing might take place.
Other significant exchanges such as Gemini, Kraken, Upbit, and Coinbase have also not added Pi Coin to their platforms. A listing on Coinbase and Kraken could significantly enhance the token’s accessibility to the U.S. audience, while Upbit would boost its visibility in South Korea.
Secondly, the Pi Network faces considerable dilution risks in the future, with a circulating supply of 7.1 billion against a total supply of 100 billion. This month alone will see the release of over 188 million new tokens, and more than 1 billion are set to be unlocked later this year. New token releases typically exert downward pressure on prices, leading to dilution concerns.
Pi Network price has formed two concerning patterns
Additionally, there are indications that the Pi coin has developed two concerning patterns that could lead to further declines in the upcoming weeks. A head and shoulders formation has emerged, traditionally associated with downward movement. This pattern consists of a head, two shoulders, and a neckline.
Most recently, the token has also formed a rising wedge pattern, which is another bearish indicator. This pattern consists of two upward-trending and converging lines, with a breakdown likely occurring as they converge.
As a result, there is a possibility that the token might decline further, potentially dipping below the critical threshold of $1.