This year, the price of Pi Network has experienced a significant decline as buyers choose to stay on the sidelines.
The Pi Coin (PI) token initially soared to nearly $3 following its mainnet launch in February. However, it then underwent a substantial sell-off, currently standing at $0.7925, resulting in billions lost for investors.
There are three primary factors contributing to the drop in Pi Network’s price this year. Firstly, despite the successful launch of the mainnet, it has yet to be listed on most major exchanges.
The most notable absence is Binance, the largest cryptocurrency exchange in the industry. In a poll conducted in February, over 85% of participants expressed a preference for listing the coin.
Other well-known exchanges, including Coinbase, Bybit, Kraken, and Upbit, have also refrained from listing Pi Network. The CEO of Bybit has claimed that Pi Network is a scam, an allegation that the developers strongly deny.
On a brighter note, some of these exchanges are expected to announce a listing for the token later this year. Pi has emerged as one of the largest cryptocurrencies, boasting a market capitalization exceeding $8 billion.
Having an exchange listing from these companies would provide a boost to its price. For instance, the price of the Orca token increased by more than 200% after it was listed on Upbit, the largest exchange in South Korea.
The decline in the Pi Network price is also attributed to anticipated dilutions as token releases increase. Data indicates that Pi tokens worth millions will be unlocked each month, with over 1.6 billion tokens set to be released in the next year. These token unlocks dilute the holdings of existing investors.
Moreover, the price of Pi coin has fallen amid the ongoing crash in the cryptocurrency market. Bitcoin (BTC) and most altcoins have experienced a decline over the past few months amid concerns about potential tariffs from Donald Trump.
Analysis of Pi Network Price
The four-hour chart indicates a sharp decline in the price of Pi Network over the last few weeks, as buyers have continued to hold back.
On a positive note, there are indicators suggesting that the sell-off may be slowing down. This is reflected in the Average Directional Index (ADX), which has decreased to 15 from nearly 60 last month. The ADX tracks the strength of a trend.
Additionally, the BBTrend indicator has shown a bullish divergence pattern. This indicator assesses the spread between the upper and lower bands of the Bollinger Bands.
All of this aligns with the two lines of a falling wedge pattern approaching their convergence point. A wedge is recognized as one of the most bullish reversal patterns in technical analysis.
Consequently, it is likely that the price of Pi coin will experience a robust bullish breakout in April, with the next target being $1.7980, reflecting an increase of 127% from its current position.