Pi Network coin has been a top laggard in the crypto market this year as it crashed by nearly 90% from its highest level in February.
Summary
- Pi Network token has crashed by nearly 90% from the year-to-date high.
- It has many headwinds, including daily token unlocks and lack of demand.
- Pi Coin may rebound as potential catalysts like exchange listings appen.
Pi Coin (PI) token was trading at $0.400 on Saturday, August 5, a few points above this month’s low of $0.3198.
Is Pi Coin a good buy today?
Pi Network, one of the most popular cryptocurrencies, has experienced a significant decline this year as many pioneers sold their tokens and unlocks increased. Its daily unlocks have boosted its circulating supply to over 7.88 billion, a process that will continue in the foreseeable future.
Pi coin has also dropped as investors downplayed the recent network news, including the launch of the Pi Network Ventures and AI Studio. PNV is a $100 million fund created to invest in projects in the ecosystem. It has not announced any investment three months after its launch.
Pi AI Studio was Pi Network’s product to leverage the ongoing boom in the artificial intelligence industry. It is a product that lets users create AI chatbots and applications.
Pi Network price has also crashed, as most tier-1 and tier-2 exchanges have ignored it. It is now listed in exchanges like OKX, Bitget, MEXC, and Gate.
Other popular exchanges, such as Binance, Crypto.com, and Coinbase, have yet to list it, possibly due to its centralization, as the obscure Pi Foundation holds over 90 billion tokens. These pressures will likely drag its price lower in the near term.
On the positive side, Pi Network price has become a bargain as its price has plummeted. It also has potential catalysts, including an exchange listing announcement and whale buying. Data released this week revealed that a mysterious whale wallet purchased 350 million Pi tokens, valued at $141 million.
Pi Network price technical analysis
The 12-hour chart shows that the Pi Coin has crashed from its all-time high as demand waned. It has moved sideways in the past few weeks, pushing the Average True Range downwards.
The ongoing consolidation is a sign that it has entered the accumulation phase of the Wyckoff Theory, which often leads to a breakout when it transitions to the distribution phase.
The Relative Strength Index and the MACD indicators have also pointed upwards. Therefore, the token is likely to experience a bullish breakout, potentially reaching the resistance level at $1.6641, its highest point in May, which is approximately 315% above the current level.
