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Reasons Why Pi Network Price is Dropping: Can It Recover to $0.4?
Pi Network is one of the strongest falling cryptocurrencies currently, losing more than 11% at the time of writing and dropping to its all-time low. This has raised concerns among market participants, as many assess the underlying reasons behind the current value decline of Pi Coin. However, it seems that despite the fall, many Pi Community enthusiasts remain optimistic about the future potential of this asset. Currently, market experts are mainly focused on the upcoming token unlock and the impending uncertainties surrounding the Pi Network. Why is the Pi Network price falling today? The price of Pi Network has fallen more than 5% today to $0.3528, recovering from the all-time low of $0.341 recorded in the past 24 hours. Notably, despite the fall, the daily trading volume of this asset surged by 86% to $168 million, indicating significant selling activity in the market. The derivatives data also presents a bleak picture. According to Coinalyze data, the open interest of Pi Coin has fallen by 8% compared to yesterday, down to $10.4 million. However, the relative strength index (RSI) of this asset seems to have provided reassurance to traders. To make it easier to visualize, the RSI index of Pi Coin is at 33, close to the oversold threshold. In other words, this indicates that this cryptocurrency may attract more traders to participate in the market at a discounted price.
Meanwhile, experts have pointed out several underlying reasons behind this fall. To better understand, in a recent post on X, a Pi community enthusiast with the pen name "The Times of PiNetwork" highlighted the key factors that may contribute to the continuous fall in the value of PI. Whale Liquidation and Delayed Listing on Binance According to analysts, one of the main reasons behind the recent sell-off could be due to large whales or institutions liquidating. He noted that the sudden large sell-off could have caused panic in the market, leading to a series of stop-loss orders and liquidations. This sell-off, which you believe is caused by whale investors or institutions rather than individual investors. Additionally, market sentiment is further affected by the surge in trading volume and the fall in value. Moreover, he also emphasized that not being listed on Binance is another potential factor. 87% of the community voted in favor of listing Pi Coin on Binance. However, the exchange has not yet issued an official announcement. This delay has caused disappointment and panic among investors. Unlocking the Pi Network and Centralization Issues Another factor that The Times of PiNetwork has highlighted is the upcoming token unlock. According to PiScan data, 160.35 million Pi tokens are expected to be unlocked in the next 30 days. They are valued at $56.78 million at the current price. The largest unlock event, scheduled for August 8 and 16, will release 8.3 million tokens each day. On the other hand, the Pi Community also criticizes the centralized nature of the Pi ecosystem. Concerns about the concentration of Pi coins among a small group of users have raised worries about the potential for price manipulation. In addition, experts indicate that the Pi Network ecosystem currently lacks strong decentralized applications (dApp) and real use cases, limiting demand and pushing prices down. Agreeing with a similar viewpoint, expert Kim H Wong believes that Pi Network is facing two major issues, namely the lack of available dApps for exchange and the limited amount of Pi coins due to locked wallets. Wong believes that opening available applications and conducting the second Pi migration could help address these issues and allow the network to grow robustly. However, despite the current price of Pi Network being bearish, some experts remain optimistic about the future prospects of Pi Network. To better understand, listing on Binance, large-scale token burns, or improving the Pi ecosystem can help stabilize prices and promote growth.