Tumble in Pi Network's (PI) Value Hits Record Low: Is Optimism Justified?
In the world of cryptocurrencies, Pi Network's PI has experienced a significant downturn, with its price dipping to a new record low below $0.40. This decline is attributed to several factors, including large-scale whale selloffs, delays in major exchange listings, and upcoming token unlocks that increase the circulating supply, creating selling pressure [1][2][3].
The broader digital asset market correction has also contributed to the latest downtrend of Pi Network's PI. Notably, Bitcoin temporarily dropped below $114,500 due to the correction [1]. However, readings below 30 in the RSI, a technical analysis tool used to identify oversold or overbought conditions, are seen as buying opportunities. In the case of PI, the oversold RSI ratio suggests the asset's price has declined too rapidly and could be poised for a rally [1].
One potential short-term rebound factor is the accumulation of PI by a large whale who has bought over 350 million PI tokens, effectively removing them from circulation and reducing selling pressure. This whale buying signals potential long-term confidence and could support price stabilization or a bounce [2].
Additionally, the growth of new wallet tools, fiat payment options, and an expanding app ecosystem may improve network use and investor sentiment over time [2][3]. Speculation about upcoming exchange listings and ecosystem expansion events, such as the Pi Network’s AI App Studio and $100 million venture fund, add to hopes for recovery despite current delays [3].
However, the market continues to face short-term headwinds from token unlocks scheduled around early to mid-August, releasing roughly 160 million tokens worth around $56 million, which could increase selling pressure and keep prices under downward pressure in the near term [1][2]. The ecosystem’s centralized token distribution also raises concerns about possible price manipulation, which could contribute to volatility [1].
As for the potential listing of Pi Network's PI on Binance, there is uncertainty surrounding the matter, with no official confirmation as of yet. However, Binance has asked its users if they want to see PI available for trading, and over 85% of voters clicked "yes" [1].
Currently, Pi Network's PI is the 44th-largest asset in the crypto sector, with a market capitalization of approximately $3.13 billion [1]. The total number of PI on cryptocurrency exchanges has surpassed 400 million and currently stands at approximately 405.5 million [1].
In summary, the immediate downtrend is due to institutional selling, exchange listing delays, and token unlock-induced supply spikes, while rebound potential hinges on whale accumulation reducing circulating supply, ecosystem development progress, and eventual major exchange listings that could improve liquidity and demand [1][2][3].
Crypto traders might use technical analysis tools, such as the RSI, to identify potential buying opportunities in cryptos like Pi Network's PI, despite the current downtrend caused by various factors. The accumulation of PI by a large whale could reduce selling pressure, potentially stabilizing or rebounding the price. However, upcoming token unlocks might increase the circulating supply, creating more selling pressure, keeping prices low in the near term.
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