Pi Network Price Slump: Is the Downtrend Finally Over?
The Pi Network has recently faced a significant price slump, dropping over 90% from its all-time high. This downturn has been marked by a series of challenges, yet there are indications that the trend may be reversing.
Current State of Pi Network Price
Following its launch in February, the price of Pi Coin (PI) reached a peak of $2.98. However, by October, it had fallen to a low of $0.1465. This sharp decline has seen its market capitalization plummet from nearly $20 billion to approximately $1.97 billion.
Factors Contributing to the Price Drop
- Centralization issues within the network
- Lack of major exchange listings
- Illiquidity in the market
- Increased token unlocks
- Overall lack of utility and ecosystem development
Many participants, known as verified pioneers, opted to sell their tokens following the mainnet launch, contributing to the price downturn. Additionally, the broader cryptocurrency market crash has exacerbated these selling pressures.
Potential for Recovery
Recent developments may signal an end to the downward trend. The Pi Core Team has made crucial announcements that could enhance the network’s prospects. Among these was a notable investment in OpenMind, focused on integrating AI capabilities for node operators.
The successful proof-of-concept with OpenMind indicates the potential for node operators to perform computations for external companies. This collaboration could enhance the utility of Pi Network.
New Developments and Features
- A testnet product for decentralized exchanges (DEX) and automated market makers (AMM) has been released.
- A new Know Your Customer (KYC) verification tool has increased the number of verified users on the platform.
- This verification enables users to transfer mined Pi tokens to the mainnet.
These updates, including the potential for future exchange listings and greater real-world utility, could contribute to a long-term rise in Pi Network’s price.
Technical Analysis of Pi Network Price
Current technical analysis reveals that Pi’s price may be nearing a significant breakout. The formation of a bullish falling wedge pattern on the daily chart is encouraging.
If Pi Coin successfully retests the upper boundary of this pattern, it could confirm a breakout, potentially pushing its price towards the psychological milestone of $0.50—an increase of 120% from current levels.
Additional technical indicators suggest strength in the market. Oscillators like the Relative Strength Index and the Percentage Price Oscillator are showing positive momentum, further supporting the possibility of an upward trend.
