Pi Network Faces Continued Decline Amidst Market Uncertainty
Pi Network (PI) has seen its value plummet this week, despite Bitcoin and other altcoins recovering. The price fell to $0.7915 on Wednesday, marking its lowest point since February 2022. This represents a 74% drop from its all-time high. The market cap has shrunk from nearly $20 billion to $5.35 billion, losing $14.65 billion.
Several factors contribute to this decline. One major issue is the lack of listings on major exchanges. Over a month after its mainnet launch,Pi hasn’t secured listings on prominent platforms like Binance,Coinbase,and Upbit. These omissions limit its accessibility to millions of potential users. Binance, the world’s largest exchange, and Upbit, a key player in South korea, have not listed Pi, impacting its visibility and liquidity. Without these listings, Pi’s trading is confined to smaller exchanges like OKX, Gate.io, and Bitget. This absence from major exchanges hinders its growth. Binance, Coinbase, and Upbit have not added Pi, substantially affecting its reach. Binance’s omission is particularly damaging,as is Upbit’s in South Korea,a region where Pi is popular. Coinbase’s absence also hinders its appeal to American investors.
Investor interest has waned, with daily trading volumes dropping to $213 million, down from over $1 billion earlier.The token’s value has suffered due to this limited exposure. The lack of widespread availability has dampened demand. The token’s market presence remains restricted, affecting its appeal.
Another concern is the tokenomics. The Pi Foundation controls a large portion of the supply, raising doubts about decentralization. The upcoming token unlocks will add 1.6 billion new tokens to the market, sparking fears of oversupply. The Pi Foundation holds a significant share of tokens, concentrating power and supply. This concentration and the upcoming token unlocks have fueled panic selling. The network’s trading volume has plummeted, reflecting reduced investor interest. The Pi Foundation’s control over the supply.
Technical analysis shows Pi in a strong downtrend. It remains below the 25-period moving average, with the BBP indicator (Elder-Ray index) below zero, signaling bearish control. the Relative Strength Index is oversold,and the MACD is negative. However, a falling wedge pattern suggests a potential rebound, possibly reaching $1.8042.
