Pi Network (PI) Token Price Drops 26.31%, Pushing Price Action Below Critical Support Levels

The Pi Network token has experienced a turbulent phase, with a dramatic 26.31% decline pushing its price action well below critical support levels.

In a turbulent 24-hour period, the Pi Network (Pi) token has experienced significant volatility, marking a dramatic 26.31% decline. This steep drop pushed Pi’s price action well below critical support levels and into extreme oversold conditions, evidenced by the Relative Strength Index (RSI) plummeting to 23.35. The RSI measures the magnitude of recent price movements to evaluate overbought or oversold conditions, typically used in technical analysis. A reading of 0 indicates extreme oversold conditions, while a reading of 100 indicates extreme overbought conditions.

However, after this swift decline, Pi took a breather and staged a modest recovery of 8.03% in the past 24 hours. As of 08:08 (GMT+8), Pi is priced at $0.965763, showing a small increase of 0.5%. The token boasts a 24-hour trading volume of $1.18 billion, and it has a market capitalization of $6.56 billion, ranking it among the top 30 cryptocurrencies.

The token’s price band over the past 24 hours ranges from a low of $0.893640 to a high of $1.07. In the seven-day period, Pi’s price has oscillated between a minimum of $0.864266 and a maximum of $1.36.

As Pi’s price continues to fluctuate, market participants are closely observing the token’s ongoing struggle between buyers and sellers.

Pi Network’s Volatile Trajectory: What’s Next?

Pi Network’s price action follows a repetitive pattern: a brief pump, followed by another sharp drop. For instance, after rallying to $1.3, market participants may observe this cycle and predict potential movements where Pi could rally further toward $1.2 or $1.3 before another retracement to $0.8 or $0.7.

If the cycle persists, we might witness price bounces to $1 or $0.9, only to be met with deeper corrections to $0.6 or even $0.5. In extreme cases, we might even see Pi testing lower support zones around $0.3 or $0.2. A steeper decline could see Pi dipping to $0.009, $0.008, or even $0.007.

This scenario is primarily driven by increasing circulating supply as more Pi tokens unlock when users pass KYC and as lockup periods expire. This influx of tokens into the market results in heightened selling pressure, which is unlikely to be offset by sufficient buying demand, especially considering the token’s poor liquidity.

The Psychology Behind Pi’s Sell-Off

Many long-term Pioneers, miners who have been accumulating Pi for the past six years, are expected to take profits upon token unlocks, which may contribute to the continued decline in Pi’s price. Additionally, some users who are unfamiliar with Web3 fundamentals might panic sell as they witness a downward spiral in the token’s price, further accelerating the bearish momentum.

However, this phase of market turbulence could also present an opportunity. As Pi’s price bottoms out and finally stabilizes, strategic investors may view it as a discounted entry point.

Considering that Pi operates as a Layer 1 blockchain, its long-term potential remains tied to ecosystem development. Only after the price stabilizes, early sell-offs subside, and Pi’s decentralized applications (DApps) begin to gain traction will we truly witness the network maturing.

For now, Pi Network remains a highly volatile asset, largely driven by market speculation and token unlocks. Short-term traders may capitalize on these price swings, while long-term investors should closely monitor ecosystem developments before making significant moves. The real test for Pi will be its ability to transition from speculative hype to fundamental-driven growth through a robust DApp ecosystem and increasing adoption. Otherwise, Pi might fizzle out like many other hyped crypto projects.