Pi Network price remained on edge on Oct. 1 even as the developers unveiled new features on its testnet.
Summary
- Pi Network price is at risk after the developers unveiled a new upgrade.
- The upgrade will introduce a new decentralized exchange and automated market maker tools.
- It has formed a bearish flag pattern pointing to more downside.
Pi Coin (PI) was trading at $0.2735, inside a narrow range it has been in for the past few days. This price is about 90% below its all-time high, meaning that investors have lost more than $18 billion.
Pi Network unveils new upgrade
The Pi Network developers have launched several notable upgrades in the past few weeks. Its most recent upgrade was in line with Stellar’s move to Protocol 23, also known as Whisk. The upgrade introduced new features to the network, such as parallel processing and execution, unified event emissions, and live state prioritization.
In a statement on Wednesday, the team said that it launched a new decentralized exchange and automated market maker functionality on the testnet.
The new upgrade will enable developers and pioneers to experiment directly with token swaps, liquidity pools, and other decentralized finance tools. Additionally, developers are able to create test tokens on the Pi Testnet blockchain.
The new development is part of the developers’ goal of becoming a major player in the crypto industry. Precisely, one goal is to allow developers to extend the network’s capabilities in the Web3 industry.
Pi Network price was muted after the upgrade because the ongoing developments have not solved the core challenges. One of the main challenges is that Pi is highly inflationary because of its substantial token unlocks. It will unlock 139 million tokens this month, a process that will go on for years.
Pi is also highly centralized, with the obscure Pi Foundation controlling billions of tokens. This centralization likely explains why most exchanges have snubbed the token.
Pi Network price technical analysis
The four-hour chart shows that the Pi Coin price has crashed in the past few months. It recently dropped below the important support at $0.3300, the lowest swing on Aug. 25.
The token has moved below the 50-period and 25-period Exponential Moving Averages. It has also formed a bearish flag pattern, which is a common risky pattern.
Therefore, there is a risk that the coin will experience a bearish breakout, potentially to the psychological level at $0.20, which is about 25% below the current level. A move above the resistance point at $0.3300 will invalidate the bearish outlook.
