Pi Network price continued its recent downtrend this week, reaching its lowest level in two weeks.
Summary
- Pi Network price continued its strong downward trend this week.
- Over 139 million tokens will be unlocked in February.
- Pi Coin’s demand has continued to wane this year.
Pi Coin (PI) token dropped to a low of $0.16, continuing its downtrend on Friday as Bitcoin and most altcoins retreated. It has now slipped by over 94% from its all-time high, with its valuation moving from nearly $20 billion to $1.4 billion.
The main reason why Pi has crashed is that it demand has dropped, while its supply is rising by the day. Data compiled by CoinMarketCap shows that the 24-hour volume dropped to $9 million on Friday.
Pi Network’s token unlocks is still continuing. It unlocked over 139 million tokens in January, and 137 million more will come online in February. Also, over 1.3 billion tokens will be unlocked in the next 12 months, with a monthly average of over 17.3 million.
Meanwhile, data shows that nearly to 2 million tokens entered exchanges on Friday. Most of these tokens moved to OKX followed by Gate and Bitget. In most cases, exchange inflows occur when holders want to sell.
More data shows that the biggest Pi Network whale has stopped buying. His last purchase happened 17 days ago when he moved 1.2 million tokens from OKX to self-custody. He now holds over 384 million tokens worth over $64 million. Pausing the purchases is notable as he used to buy tokens worth millions of dollars each month.
Pi Network faces some major challenges, including the lack of an ecosystem and new exchange listings. It is also a highly centralized cryptocurrency with the foundation holding over 90 billion tokens worth over $18 billion.
Pi Network price technical analysis
The daily chart shows that the Pi Coin price has been in a strong downward trendline in the past few days. It crashed below the key support level at $0.1928, its lowest swing on December 15.
The coin has remained below the 50-day and 100-day Exponential Moving Averages. It also moved below the Ichimoku cloud indicator, while the Relative Strength Index has moved to the oversold level.
The Average Directional Index has moved to 47, a sign that the downward momentum is accelerating. Therefore, the most likely scenario is that it continues to fall, potentially to an all-time low of $0.1500. A drop below that level will point to more downside.
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