The price of Pi Network has continued its slide this week, even as Bitcoin and various altcoins have begun to recover.
On Wednesday, Pi Network (PI) fell to $0.7915, marking its lowest price since February 2022 and plunging over 74% from its all-time high. The market capitalization has decreased from nearly $20 billion to $5.35 billion, resulting in a staggering loss of $14.65 billion.
Reasons Behind Pi Coin’s Decline
The decline in Pi Network’s value can be attributed to the ongoing lack of exchange listings more than a month after its mainnet launch. The majority of Pi’s trading activity is currently taking place on platforms such as OKX, Gate.io, and Bitget.
Major exchanges like Binance, Coinbase, and Upbit have yet to include Pi coin, preventing access for millions of potential users. Binance is particularly significant as it is the largest exchange in the sector, while Upbit holds a considerable market share in South Korea, where Pi is very popular. Furthermore, a listing on Coinbase would allow access to American customers.
The price of Pi coin has also plummeted due to diminishing demand from investors. Data from CoinGecko indicates that its trading volume over a 24-hour period on Wednesday was merely $213 million, a sharp decline from more than $1 billion in daily volume during its peak in February and early March.
Additionally, concerns surrounding Pi Network’s tokenomics have contributed to its price drop. According to available data, the Pi Foundation controls a significant majority of circulating and locked tokens, leading to a concentrated supply. The seven wallets associated with the Pi Foundation hold coins valued at around $50 billion.
Pi Network holders have also engaged in panic selling as upcoming token unlocks threaten to saturate the market with additional supply. More than 1.6 billion new tokens are set to be unlocked in the following year.
Analysis of Pi Network’s Price Movement
The four-hour chart indicates that Pi coin has been in a pronounced downtrend this month, hitting its lowest level in over thirty days. It has consistently traded below the 25-period moving average, while the bull-bear power indicator has remained beneath the zero line since mid-March.
The BBP indicator, or Elder-Ray index, evaluates buying and selling strength in the market. Remaining below zero suggests that sellers have dominated.
The Relative Strength Index has dipped into oversold territory, and the MACD indicator has held below the zero line.
On a more positive note, the coin has formed a falling wedge pattern, with its two trendlines drawing closer to convergence. This could suggest a potential rebound, possibly retesting the key resistance level at $1.8042, the highest point from March 13. This target is roughly 125% higher than the current price.