Pi Network continues its downward trend on Monday following the news event regarding the ecosystem last week. The Pi Coin (PI) token has fallen to a low of $0.7165, down 57% from this month's high. It is also hovering near its lowest level since May 9. It has wiped out more than $4.21 billion in value over the past few days as market capitalization dropped from $9.35 billion to the current $5.14 billion.
The price of Pi Network has dropped sharply as concerns about this coin have increased. First, there were worries that insiders had sold tokens in their wallets. In a post on X, Dr. Altcoin, a well-known expert on X, estimated that the team sold about 700 million coins in recent months.
Another data point on the PiScan page shows that the Pi Foundation has withdrawn 15.02 million Pi Coins in the last 24 hours. The wallet currently holds 25.28 million Pi Coins valued at over $18.1 million.
The price of the Pi Network has also dropped sharply after the Core Team was accused of conducting a rug pull earlier this month. Some analysts noted that the team posted a tweet hinting at an important announcement during the Consensus event. That post triggered a short sale, pushing the token price up by over 200%. Some analysts noted that the Pi Foundation used the price spike to sell more coins.
A major concern for investors and exchanges is that Pi Network is a highly centralized cryptocurrency project and is unaudited. The Pi Foundation holds over 90 billion tokens, placing the community at risk in the event of an incident such as a hack or token sale. Worse still, the core team has yet to disclose any details about the fund's membership.
The issue of centralization may explain why tier 1 exchanges like Coinbase and Binance have not yet listed it after three months of launch.
Furthermore, there are concerns that Pi Network has become a ghost chain or a blockchain without developers. Although the launch of Pi Network Venture is a step in the right direction, analysts note that it may take more than a year before funded projects launch on the mainnet.
Pi Network Price Analysis
The eight-hour chart shows that the price of Pi Coin has been on a sharp decline in recent days. It has moved from a high of $1.6708 on May 12 down to $0.7260.
Pi has moved below the important support level of $0.7902, the highest volatility level on April 5 and 12. The price has dropped below the 50-day moving average and is forming a bearish flag pattern, a common continuation sign.
Therefore, this coin is likely to continue to decline as sellers target the support level at $0.5745, the lowest volatility level on April 29.