A Struggle for Pi Network’s Price
Since its launch on February 22, Pi Network’s token (PI) has not been without incidents. Following an initial short-lived rally after its launch, the PI Coin price has dropped 80%, with little hope of recovery. Even after hitting an all-time high of $3.00 on February 26, PI now sells at a lowly $0.60. Poor tokenomics and the failure by the Pi Network team to innovate have trapped the token in a downtrend.
With the imminent unlocks of $139 million of PI tokens this May, Pi Network’s recovery path is far from clear. Let us examine the most important determinants of the price of Pi Network and what is likely to happen in the coming weeks.
What’s Behind Pi Network’s Struggles?
PI’s new-held surge after its launch has never had traction again. Various reasons are weighing down against the cryptocurrency:
- Problematic Tokenomics: The tokenomics of PI have created problems for the crypto community. There never was a good, sustainable use case for the token, and this has created suspicions among investors as to whether or not the token will survive in the long run.
- Limited Innovation: The team behind Pi Network has largely been unable to present any significant updates, innovations, or applications that would at least give Pi a fighting chance against more recent entrants in the highly competitive landscape of the day-by-day evolving cryptocurrency scene.
- Market Sentiment: Investor sentiment for PI has lost steam. Volumes are 50% lower, and overall sentiment regarding the token is bearish. It cannot cross the 3-month downtrend at this point, which shows that returning to the spotlight is a wonderful assignment for it.
The $139M Unlocks: A Major Hurdle for Pi Network
One of the greatest hurdles Pi Network must overcome during May is the release of 234 million PI tokens, with an approximate worth of $139 million. Unlocks, to be released across the month, can further strain the price of PI, applying further sell-side pressure.
Historical data shows that similar unlocks have historically led to strong sell-offs and aggravated bearish price action. If the same theory follows through with the May unlock, we could be looking at further price decreases for Pi Network, especially if the unlocked PI tokens subsequently flood the market.
Pi Network’s Price Forecast: Will It Breakout or Continue Declining?
On the four-hourly charts, PI is clearly under bear pressure. It is in a falling triangle pattern, which is a chart pattern that generally suggests weak demand and the potential for further price declines.
In this case, the PI price will most likely drop even lower, perhaps to test the support levels around $0.51. A drop to this level would confirm the continuation of the ongoing downtrend since the absence of buying interest prevents PI from rebounding.
Yet, hope exists for the possibility of a breakout. PI has been flirting with a breakout above the upper declining trendline, although consistently been rejected. If the token is able to penetrate this important level, a rally in price to $0.79 could ensue, possibly changing the market structure in the bulls’ favour.
Key Levels to Watch
Support Level: $0.51 (potential downside target)
Resistance Level: $0.79 (possible breakout level)
RSI Indicator: Watch for the Relative Strength Index (RSI) to break above 50 for confirmation of bullish momentum.
Source: TradingView
Speculation Surrounding Pi Coin’s Binance Listing
Fuelling the hype around Pi Network is the rumour of a possible Binance listing. A recent post by Pi Barter Mall asserted that Pi Coin (PI) might be listed on the Binance exchange in the near future. As per the post, the Pi Commerce Team (PCT) has reached the last stages of negotiations with Binance.
This rumour comes after a Binance community vote on whether PI should be listed on the platform, fuelling hopes that the highly anticipated listing may arrive sooner rather than later.
A listing on Binance would surely make Pi Coin more visible, which could fuel demand and turnover. But for now, until the official news is out, this is just pure speculation, and investors should tread carefully.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.