Pi Network's Price Drops Amidst Crypto Market Recovery: Insights Explored

The value of Pi Network's cryptocurrency has fallen below $1, currently trading at $0.92, after a 4% decrease in the past 24 hours. This decline occurred despite a broader recovery in the cryptocurrency market.

Pi has been facing challenges, with its value dropping by over 65% from its earlier high of $3 this year. One of the primary reasons for this decline is the increasing supply pressure. Data from Pi Scan reveals that nearly 99.3 million Pi (PI) tokens, valued at around $91 million based on Mar. 25 prices, are set to be released in the upcoming 30 days.

An average of 3 million tokens will be released daily during this period. On Apr. 3, the largest single-day release will occur, with 6.8 million tokens entering circulation. Even larger releases are expected in the future, with a total of 115.57 million in April, 182 million in May, and 222 million in June. This could lead to additional selling pressure.

Uncertainty surrounding exchange listings has also negatively affected investor sentiment. Many investors were hoping for a Binance listing, but there has been no confirmation, leading to frustration. Concerns about centralization are also growing.

Unlike most blockchains where nodes are operated independently, the Pi Core Team manages Pi's SuperNodes. Although there are now 42 of these nodes instead of just three at launch, Pi Network has not clarified how these nodes were selected.

Some believe that burning tokens could help stabilize the price. In a Mar. 24 post on X, cryptocurrency analyst Dr. Altcoin suggested reducing the supply by 60-100 million Pi coins to balance the market. Pi Network recently burned 10 million tokens, reducing the total circulating supply to 6.77 billion, but this has not significantly impacted the price.

According to a tweet, the centralized exchanges (CEXs) have been flooded with unlocked Pi coins, and the Pi Trust Circle (PTC) will need to burn another 60 to 100 million coins from the circulating supply in the coming days to bring Pi back to $1. The tweet expresses confidence that Pi will soon return to $1.

From a technical perspective, PI is currently trading at $0.9253 and exhibiting a weak trend. The support level is at $0.70, and the price is struggling to stay above $1.00, which is acting as immediate resistance.

The Bollinger Bands indicate that sellers are controlling the price swings, with PI close to the lower band. The relative strength index at 43.27 indicates a bearish trend, although it has not yet reached oversold levels. Important moving averages (10, 20, 30 periods) indicate selling pressure, and the moving average convergence divergence is also bearish.

If PI falls below $0.85, it may drop to the $0.70 region. A break above $1.00 could shift the momentum, with $1.34 being the next target. For now, PI remains weak unless buyers push it higher.