Pi Network Price Today: Is Pi Heading For A Deeper Drop Below $0.60?:
Highlights:
- Pi Network’s market cap fell from $11 billion to $5 billion, losing $6 billion in a single week.
- Pi Coin has 100 billion pre-mined tokens, with 92 billion controlled by the Pi Foundation.
- Pi Coin broke key support at $0.7760, with the RSI dipping below 50, signaling bearish momentum.
Pi Network today dropped from a market cap of $11 billion to $5 billion in just a week, losing $6 billion. Pi Coin has a supply of 100 billion tokens, and the Pi Foundation manages 92 billion of them. Pi Coin failed to hold above $0.7760, and technical indicators pointed to possible bearish moves.
Pi Network Price Today Faced Sharp Market Decline
Pi Network price today fell from $1.6673 to $0.7040, marking a drop of over 57%. The drop has erased nearly $6 billion in value, shrinking Pi’s total market value from $11 billion to $5 billion.
Escalating concerns about centralization and consistent token unlocks have resulted in a strong market backlash.
While Bitcoin and Ethereum depend on proof-of-work and proof-of-stake, Pi Network does not. Instead, all 100 billion Pi coins were already mined and managed by the Pi Foundation.
According to PiScan, the foundation holds 92 billion of these tokens, indicating a huge concentration of control on the network.
Concerns Over Centralization and Token Unlocks
More so, a key problem for the Pi Network is that it is centralized. As opposed to Bitcoin, where there are thousands of miners, the Pi Foundation largely manages the token supply in the Pi network.
This concentration of control poses security risks, as a breach or internal decision could potentially flood the market with unlocked tokens.
In addition, the foundation has not had an independent audit, so some may doubt whether the amount of tokens in circulation is genuine and the project is fully transparent.
The foundation has 92 billion tokens, though at the present time, only 7.15 billion are distributed. Transparency concerns have convinced Binance and Coinbase to not list Pi Coin, therefore reducing its overall use and trading.
Technical Indicators Point to Further Losses
From a technical viewpoint, the Pi Network price today was below the important support level at $0.7760, which it reached on April 12.
With this break, a bullish break-and-retest scenario was no longer valid, hinting at expanded bearishness. The 25-period moving average has also turned downward, reinforcing the negative trend.
Moreover, the Relative Strength Index (RSI) dropped to below 50, showing that selling power is greater than buying power.
If this trend continues, Pi Network’s price could again touch the $0.60 level, near the lowest support line since April 7. Dropping to this price might result in even greater losses, leading the price to fall further to $0.40 in the weeks ahead.
Future Outlook for Pi Network
Overall, the future of Pi Network is not currently certain. Approximately 1.48 billion tokens are scheduled to be released in the coming year, keeping the price down. Since the foundation manages most of the coins, investors are worried about potential sell-offs from their side.
Amid the bearish sentiments surrounding Pi Network price today, the company announced the creation of Pi Network Ventures to help increase Pi utility, integrate global production into its blockchain, and bring Pi into practical areas.
Notably, these three primary goals are focused on expanding the ecosystem and putting the digital currency into practical use. This move is in line with Pi Network’s strategy to increase utility and broad acceptance within the global community.
At the time of writing, Pi Network price was trading at $0.73, down 38% in the last seven days. The market cap dropped to $5.8 billion, while the volume fell by 48% to $183 million. Key support lies at $0.67, with resistance near $0.7711.
