Pi Network Price Has Hit a Record Low: Top Reasons it May Crash Further

Key Insights

• Pi Network price has plunged to a record low this week.
• Its token unlocks are continuing, with the network releasing 1.7 billion tokens.
• Technical analysis suggests that the token may drop further this year.

Pi Network price continued its strong downtrend and reached its all-time low as the crypto market sell-off intensified. With its market capitalization approaching $1 billion, the coin has now shed close to $1 billion in value. Still, this crash may just be the beginning as the coin has some bearish catalysts ahead.

Pi Network Price Technicals Suggest More Downside Likely

One of the main bearish catalysts for the token is its technicals. The chart below shows that it has now lost a crucial support level of $0.1193, its lowest level in June this year. Moving below this level confirmed its bearish outlook as it signaled that bears have prevailed.

The Average Directional Index (ADX) has jumped to 32.85, its highest level since June 19 and well above the April low of 13.52. A rising ADX indicator sends a signal that an asset’s downtrend is gaining momentum.

Additionally, Pi Coin price remains below the 50-day moving average. Therefore, the path of the least resistance is downwards, and it may move below the support level of $0.100.

Pi Coin’s Demand Has Waned

For a coin to rebound, it needs substantial investor demand. In Pi’s case, however, there are signs that this demand has dried up. Data compiled by CoinMarketCap shows that the 24-hour volume stood at $15 million. It has remained below $20 million for months, even with the Kraken listing.

The demand retreat has coincided with ongoing token unlocks, which add new coins every day. Data shows that 1.7 billion tokens worth over $175 million will be unlocked in the next 12 months. These are huge coins, representing a 15% of its current market value.

Pi Network’s Efforts are Unlikely to Pay Off

The team behind Pi Network has done a lot to create value for its investors. For example, they have advanced the biggest network upgrade on record. This upgrade has helped it to align with Stellar Network’s v26.

It has brought major features to the network. For example, it has introduced smart contracts to the network, making it possible for developers to build apps on the network. They even launched the Remote Procedure Call (RPC) earlier this year.

However, despite this progress, this product has a slim chance of succeeding. For one, there are hundreds of layer-1 and layer-2 networks in the industry, with most of them being ghost chains. A good example is Cardano, which has struggled to attract large developers to the network. Other well-known names that have struggled are IOTA, Ziliqa, Algorand, and Tezos.

Pi Network has also launched new tools, including PiVerify, which aims to leverage the success of its KYC program to create a product that will compete with World ID and Human Protocol. The general view is that verifying humans will be important as the world embraces AI agents.

However, this business faces some major challenges ahead. For one, World, in pole position and backed by OpenAI’s Sam Altman, has failed to gain market share. While it onboarded companies like Tinder and Okta as clients, none of them is actively using it today.

Additionally, there are signs that Pi Network’s pioneers have abandoned the project as its token plunged by over 90% from its peak levels. It is common for investors to dump assets whenever their prices fall.

Also, based on the underwhelming demand from Kraken, it is likely that other crypto exchanges will not list it soon. A listing would help it gain traction among investors by making it available to millions of them.

In summary, Pi Network’s price has strong downward momentum, is unlocking millions of tokens a month, and its efforts may not pay off over time.

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