Pi Network's PI Token Crashes 30% Despite $100M Fund Launch!

Pi Network Ventures: A $100 Million Bet on the Future

Hold onto your hats, crypto fans! Pi Network's native token, PI, just took a nosedive, plummeting over 30% in the last 24 hours. It's now trading at a measly $0.8405, even after a huge ecosystem announcement. On May 14, the Pi Foundation dropped a bombshell: Pi Network Ventures, a whopping $100 million fund to back startups that'll bring real-world utility and boost adoption. This isn't your average fund—it's set to operate like a Silicon Valley venture capital powerhouse!

Where's the Money Going?

The fund's got its eyes on startups in hot sectors like generative AI, gaming, FinTech, e-commerce, and social media, not to mention blockchain-native companies. The Pi Foundation's got big plans: "Pi Network Ventures plans to support not only blockchain-native startups, but also a wide array of businesses in generative AI, gaming platforms, FinTech, ecommerce, embedded payments, marketplaces, social networks, and other real-world applications."

Market's Cold Shoulder

But here's the kicker: despite the grandeur of the announcement, the market's reaction was anything but warm. PI tanked from a daily high of $1.30 to a low of $0.8552 before settling around $0.92—a brutal 30% drop. Ouch!

What's the Deal?

So, what gives? It looks like the news might've fallen short of what traders were hoping for. Maybe they were dreaming of a big exchange listing that would've brought in real liquidity and price discovery. But with no listing in sight, some investors might've seen the fund launch as a letdown or already baked into the price, sparking a classic "sell the news" move.

Technical Talk: Where's PI Heading?

Now, let's dive into the charts. The technical indicators are showing a mixed bag, leaning slightly bullish. PI's still hanging above key moving averages like the 50-day SMA and the 10-day EMA, both flashing buy signals. The relative strength index is sitting at a neutral 57.24, signaling market indecision, but the moving average convergence divergence hints at short-term bullish potential.

What's Next for PI?

If PI can hold steady above the $0.85 support level, we might see a quick bounce back to $1.10. But if it slips below $0.85, watch out—it could be headed for a retest of the $0.74 support zone. Right now, the market's chewing over the announcement, with short-term traders bailing out, even as the project keeps pushing forward.