Pi Network Price Today: Will The $100M Fund Halt The PI Token Dip?
Highlights:
- Pi Network launched a $100M venture fund for startups on May 14.
- PI token dropped over 25% in 24 hours, trading at $0.8803.
- PI is above 50-day SMA and 10-day EMA, with RSI at 57.24.
Pi Network has initiated a venture fund worth $100 million to promote startups and wider adoption of its native token, PI. Despite this announcement, PI has sharply dropped in the last 24 hours.
This steep decline has left many wondering whether the fund will stabilize the price of the token or whether prices are likely to continue falling.
Pi Network Launches $100M Fund to Boost Adoption
On 14th May, Pi Network announced a $100 million venture fund, Pi Network Ventures, which will fund companies developing real-world applications on its blockchain.
The fund is meant to focus on areas such as generative AI, gaming, fintech, e-commerce, social media, and blockchain, just like the Silicon Valley venture capital giants. This move corresponded with the Pi Network’s desire to grow its ecosystem and create long-term token utility.
Notably, Pi Network Ventures is intended to bring early-stage startups the necessary capital to scale their projects, which may create demand for Pi as more ventures develop on its network.
Such an initiative may become essential for building the presence of the network in emerging markets of technologies and provide developers and companies with a supportive ecosystem to build innovative blockchain solutions.
Market Reaction Remains Muted Despite Major Announcement
Compared to the scale of this funding initiative, Pi Network price today was quite bearish. The token dipped 25% from its 24-hour peak of $1.30 and dipped to a low of $0.8183 before leveling off at $0.8803.
This decrease, in the face of a massive injection of funds, indicates that traders were anticipating a greater trigger, like a large listing on a major exchange to attract flow and improve price discovery.
Notably, the price volatility indicated the risk-averse mood of the market, where some investors might have sold in reaction to the news, resulting in the classic “sell the news” situation.
This pattern is common when positive announcements fail to meet investor expectations, resulting in short-term sell-offs.
Technical Indicators Point to Bearish Signals for Pi
Further on Pi Network price today, Pi is above major critical moving averages such as the 50-day simple moving average (SMA) and the 10-day exponential moving average (EMA), which are considered to be bullish indicators.
Relative strength index (RSI) is also at 57.24, meaning the token is not in the overbought zone; there is room for possible recovery should momentum be restored.
However, the steep drop in the recent past has tested the support at $0.85, making PI close to this critical support level. If this holds, the token may bounce back to the $1.10 resistance level in the next days.
Alternatively, a breach below this zone can spark another deeper correction that can pull the token into the $0.74 consolidation area, where another significant support rests.
More so, Pi Network 4-hour Moving Average Convergence Divergence (MACD) exhibited a bearish crossover, as the MACD line was below the signal line.
This indicated bearish momentum is continuing, as the histogram bars were negative, suggesting continued selling pressure unless a strong reversal occurs.
Additionally, the Bull Bear Power (BBP) indicator is at -0.2650, a strong bear control as sellers dictate the current price action. This deeply negative reading signals that bulls need significant buying momentum to regain control and push the price back above critical resistance levels.
