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The price of Pi Network has dropped 43% from its all-time high. Explore the three main reasons driving the bearish momentum of Pi Coin.
The price of Pi Network has dropped 43% from its all-time high of $2.98 set a week ago. Pi Coin was also one of the few Altcoins that failed to see a strong upswing over the weekend after U.S. President Donald Trump announced the establishment of a crypto strategic reserve. With the decline of Pi Network, let's explore the three main factors driving the bearish trend.
Three Reasons for the Plunge in Pi Network Price Today
The Pi Network token has dropped 7% in the past 24 hours, trading at $1.67 today. Pi Coin hit a record high of $2.98 last week, but has since declined 43%. Here are the three main reasons for the plunge in Pi Network price.
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Delayed Listing on Binance
One of the factors driving the rise in Pi Network price has been the hype around exchange listings. However, the delay in the token's listing on Binance has left buyers fatigued.
Binance conducted a community vote from February 17 to February 27, asking its users to vote on whether to list Pi Coin. At the end of the vote, 86% of Binance users supported the listing. However, nearly a week after the vote ended, the Pi Network token has yet to be listed for trading on Binance.
If Binance fails to list the Pi coin, it could undermine investor confidence and exacerbate the token's decline.
Whales May Dump Pi Coins Due to Slow Adoption
Pi Network may also crash due to whale manipulation, according to analyst Dr Picoin, who says the current volatility is caused by whales' pumping and dumping plans. In his analysis, Dr Picoin pointed out that the price of Pi Network could stabilize if decentralized applications (dApps) are launched on the open network.
"Once the majority of Pi DApps are deployed, they will significantly reduce the pumping and dumping cycles by increasing utility-based demand and stabilizing liquidity," he said.
Recently, Florida-based real estate company Zito Realty announced that it will accept Pi Coin as a payment method for real estate transactions. If this trend continues, it could separate PiCoin from the meme coin market and drive a strong upward trend.
Pi Network Price Succumbs to Rising Bearish Pressure
The Pi Network token's hourly chart shows that the bearish momentum depicted in the descending parallel channel is strengthening. The RSI is below 50, indicating that the bears are in control. Meanwhile, the RSI has been making lower lows, suggesting that the selling pressure is increasing.
The Momentum Oscillator also shows a rising bearish momentum, which could exacerbate the downward trend in Pi Network price in the short term. The RSI and AO indicate that the sellers' strength has exceeded the buyers', leading to a decline in the value of the Pi Network token.
If these bearish trends persist, PI Coin may break below the $1.49 support level. A breach of this level will cause the Pi Network price to break below the downtrend line and accelerate the downward trend. If it fails to hold this support, Pi Coin could drop below $1 to $0.70.
Conclusion
There are several reasons for the decline in the Pi Network token. These include the delayed listing of Pi Coin on the Binance exchange. Whales may also dump Pi Coin, driving the bearish momentum. With the bears gaining control, the Pi Network price could break below $1 and find support at $0.70.
