Understanding Pi Network’s Price Decline Amidst Crypto Market Recovery
The price of Pi Network is currently down to $0.92, a 4% decline despite overall crypto market recovery. Factors contributing to this decline include increased supply pressure from upcoming token unlocks, uncertainty over exchange listings, and growing centralization concerns. Recent attempts to stabilize price through token burning have proven largely ineffective, leaving the market outlook uncertain unless significant bullish activity occurs.
The price of Pi Network has declined significantly, currently positioned at $0.92, reflecting a 4% decrease in the past 24 hours despite a general recovery in the cryptocurrency market. This situation represents a substantial drop of over 65% from its earlier peak of $3. A primary driver of this price decline is the increased supply pressure, as nearly 99.3 million Pi tokens, equivalent to approximately $91 million as of March 25, are set to be unlocked in the next month.
Approximately 3 million tokens are scheduled to be released daily during this period, with a significant single-day unlock of 6.8 million tokens anticipated on April 3. Projections indicate even larger unlocks in subsequent months, with totals reaching 115.57 million in April, 182 million in May, and 222 million in June, which may exacerbate selling pressure in the market.
Investor sentiment has been negatively influenced by the uncertainty surrounding exchanges, particularly due to the lack of confirmation regarding a listing on Binance, which has left many hopeful investors feeling frustrated. Additionally, concerns about centralization have emerged as the Pi Core Team maintains control over its SuperNodes, with the current setup featuring 42 nodes rather than the initial three, and clarity on selection criteria remains lacking.
It has been suggested that burning excess tokens could stabilize prices. Notably, cryptocurrency analyst Dr. Altcoin proposed a substantial reduction of 60 to 100 million Pi coins to recalibrate market conditions. Although Pi Network has recently executed a burn of 10 million tokens, reducing the circulating supply to 6.77 billion, there has not been a corresponding positive impact on the price.
From a technical perspective, Pi tokens are trading at $0.9253, exhibiting a weak downward trend. The support level is noted at $0.70, with the immediate resistance situated at $1.00, which the price struggles to surpass. Analysis using Bollinger Bands indicates that sellers currently dominate price trends. The relative strength index at 43.27 points toward a bearish market condition, and critical moving averages suggest continued selling pressure. If the price drops below $0.85, it could fall towards the $0.70 range, whereas surpassing $1.00 could redirect momentum with a target of $1.34.
In summary, despite a broader recovery in the cryptocurrency market, Pi Network’s price is experiencing significant challenges due to impending supply increases, uncertain exchange listings, and centralization concerns. The lack of effective price stabilization measures, such as token burning, further complicates the situation. Thus, Pi’s market outlook remains bleak unless buyer interest can drive the price above key resistance levels.
Original Source: crypto.news
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