Pi Network Price Analysis

Pi Network price has continued its downward trend this week even as Bitcoin and most altcoins rebounded.

Pi Network (PI) dropped to $0.7915 on Wednesday, its lowest level since February 2022, down by over 74% from its all-time high. Its market cap has dropped from almost $20 billion to $5.35 billion, marking a $14.65 billion wipeout.

Why Pi Coin Price Has Crashed

Pi Network has experienced a price crash due to the lack of exchange listings over a month post mainnet launch. Currently, most trading occurs on exchanges like OKX, Gate.io, and Bitget.

Notably, major exchanges like Binance, Coinbase, and Upbit have yet to list Pi coin, limiting access for millions of potential traders. Binance’s absence is critical as it’s the largest exchange, and Upbit holds a significant market share in South Korea, where Pi enjoys high popularity. A Coinbase listing could further expand its reach to American customers.

Investor demand for Pi coin has significantly decreased. According to CoinGecko, its 24-hour trading volume on Wednesday was just $213 million, a stark contrast to over $1 billion in daily volume at its peak in February and early March.

Further complicating matters, concerns over Pi Network’s tokenomics persist. Data from Pi Scan indicates that the Pi Foundation holds a significant portion of circulating and locked tokens, leading to substantial supply concentration. The seven Pi Foundation wallets currently hold coins valued at $50 billion.

Moreover, Pi Network holders have begun to panic-sell due to impending token unlocks, which will introduce over 1.6 billion new tokens into circulation over the next year.

Pi Network Price Analysis

The four-hour chart indicates that Pi coin is experiencing a strong downtrend, having fallen to its lowest point in over a month. It remains below the 25-period moving average, and the bull-bear power indicator has been below zero since March 14.

The BBP indicator, known as the Elder-Ray index, suggests that sellers currently dominate the market, as it has consistently remained below the zero line. The Relative Strength Index indicates that the coin is oversold, while the MACD indicator remains below zero.

On a more positive note, Pi coin has formed a falling wedge pattern, with converging trendlines indicating a possible upcoming bounce back. A rebound could see the price retest the resistance level at $1.8042, which is approximately 125% above the current level.

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