Pi Network’s native token, Pi Coin, has suffered a precipitous drop in value, worrying investors, particularly since the wider crypto market is exhibiting signs of rebound.
Pi Coin is still in the red, having fallen more than 69% from its $3 high in early this year. It is currently at $0.8926, down 22% over a week and 6% over the last 24 hours. It has a market cap of $6.03 billion, with a trading volume of $200 million over the last 24 hours.
Key Reasons for the Fall of Pi Coin
There were a number of reasons why the fall occurred, including macroeconomic pressures, supply issues, and uncertainty regarding exchange listings.
1. Market Uncertainty from the FOMC Meeting
The recent FOMC meeting by the U.S. Federal Reserve has ushered in uncertainty in financial markets. Investors were looking forward to potential interest rate reductions, which would have benefited risk assets such as cryptocurrencies. The Fed’s reluctance, however, caused overall selling pressure in the markets, affecting Pi Coin also.
2. Token Supply and Circulation Concerns
Pi Coin has a total supply of 100 billion, but 6.84 billion are circulating. Although there have been tokens burned as a result of unverified accounts and transaction fees, there has not been an official large-scale burn.
Furthermore, there is a huge token unlock that will occur within the next 30 days, with 99.3 million Pi tokens being released into circulation, putting pressure on selling.
The biggest one-day unlock is on April 3, when 6.8 million tokens will be released into the market. Much larger unlocks follow in April (115.57 million), May (182 million), and June (222 million), which fuel fears of further price drops.
3. Binance Listing Disappointment
Most Pi Coin investors were waiting for a listing on Binance following a 87.1% community approval vote on February 27. However, Binance has not made any listing announcements, and this left investors frustrated with panic selling.
Technical Analysis and Price Outlook
Pi Coin’s price is sitting at $0.92 and is barely staying above the resistance level of $1.00. Experts issue a warning that if the price goes below $0.85, it can go as low as $0.70.
The Relative Strength Index (RSI), which is currently at 43.27, is one indicator that points to ongoing negative momentum. Weak investor confidence is reflected in the capital outflows shown by the Chaikin Money Flow (CMF) indicator.
Can Pi Coin Recover?
For Pi Coin to recover, significant developments are necessary. A tier-1 exchange or Binance listing may help invite buyers, while a huge-scale token burn can help stabilize the price by cutting supply. Moreover, fixing migration problems and enhancing decentralization would improve confidence.
However, until these challenges are addressed, selling pressure remains high, and further declines may continue
Also Read: Teltlk to Launch Visa Card for Pi Coin and USDT Payments
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