Pi Network price has continued its downward trend this week even as Bitcoin and most altcoins rebounded.
Pi Network (PI) dropped to $0.7915 on Wednesday, its lowest level since February 2022, down by over 74% from its all-time high. Its market cap has dropped from almost $20 billion to $5.35 billion, a $14.65 billion wipeout.
Why Pi coin price has crashed
Pi Network has crashed because more exchange listings have remained elusive over a month after its mainnet launch. Most of Pi’s trading is happening on exchanges like OKX, Gate.io, and Bitget.
The most notable exchanges, like Binance, Coinbase, and Upbit have not listed Pi coin, making it unavailable to millions of users. Binance is a notable exchange because it is the biggest one in the industry, while Upbit has a substantial market share in South Korea, a country where Pi is highly popular. A Coinbase listing would give it access to American customers.
Pi coin price has also crashed as demand among investors wanes. According to CoinGecko, its 24-hour volume on Wednesday was just $213 million. At its peak in February and early March, Pi averaged over $1 billion in daily volume.
Further, Pi Network has crashed as concerns about its tokenomics remain. Pi Scan data shows the Pi Foundation holds most of the circulating and locked tokens and controls a large portion of the supply. The seven Pi Foundation wallets listed on the explorer hold coins currently valued at $50 billion, representing substantial concentration.
Pi Network holders have also panic-sold their coins due to upcoming token unlocks that will flood the market with more supply. Over 1.6 billion new tokens will be unlocked in the next 12 months.
Pi Network price analysis
The four-hour chart shows that the Pi coin has been in a strong downtrend this month as it crashed to the lowest point in over a month. It has remained below the 25-period moving average, while the bull-bear power indicator has stayed below the zero line since March 14.
The BBP indicator, also known as the Elder-Ray index, measures the strength of buyers and sellers in the market. Remaining below the zero line is a sign that bears have prevailed.
The Relative Strength Index has moved to the oversold level, while the MACD indicator has remained below the zero line.
On the positive side, the coin has formed a falling wedge pattern, with the two trendlines approaching their convergence level. Therefore, there is a possibility that the coin will bounce back soon and possibly retest the key resistance point at $1.8042, the highest swing on March 13. This price target is about 125% above the current level.
