Pi Network price continued its downward trend this week even as Bitcoin and most altcoins recovered.
Pi Network fell to $0.7915 on Wednesday, its lowest level since February 2022, down more than 74% from its all-time high. Its market capitalization has fallen from nearly $20 billion to $5.35 billion, a loss of $14.65 billion.
Why Pi Price Plunged
Pi Network has crashed as many trading listings remain unlisted more than a month after its mainnet launch. Most of Pi's trading takes place on exchanges like OKX, Gate.io, and Bitget.
Most notable exchanges, like Binance, Coinbase, and Upbit, do not list Pi, leaving millions of users without access. Binance is notable for being the largest exchange in the industry, while Upbit has a significant market share in South Korea, a country where Pi is popular. A listing on Coinbase would help it reach US customers.
Pi’s price has also plummeted as investor demand has declined. According to CoinGecko, its 24-hour trading volume on Wednesday was just $213 million. At its peak in February and early March, Pi averaged more than $1 billion in daily trading volume.
Furthermore, Pi Network has collapsed as concerns about its tokenomics persist. Pi Scan data shows that the Pi Foundation holds the majority of the tokens in circulation and is locked up, controlling a large portion of the supply. The seven Pi Foundation wallets listed on the explorer hold coins currently worth $50 billion, representing significant centralization.
Pi Network holders have also been panic selling their coins as the upcoming token unlock will flood the market with a larger supply. Over 1.6 billion new tokens will be unlocked over the next 12 months.
Pi Network Price Analysis
The four-hour chart shows that Pi coin has been in a strong downtrend this month as it dropped to its lowest level in over a month. It remains below its 25-period moving average, while the bull-bear strength indicator has remained below the zero line since March 14.
The BBP indicator, also known as the Elder-Ray index, measures the strength of buyers and sellers in the market. Staying below the zero line is a sign that bears have won.
The relative strength index has moved into oversold territory, while the MACD indicator remains below the zero line.
On the upside, the coin has formed a falling wedge pattern, with two trendlines approaching their convergence. Therefore, it is likely that the coin will soon bounce back and possibly retest the key resistance at $1.8042, the swing high on March 13. This price target is about 125% higher than the current level.
