Pi Network is facing downward price pressure, which may break through the 0.40 USD threshold in the near future.
Despite many updates on ecosystem development and application support, most positive factors have already been reflected in the current price, causing liquidity and buying power to weaken.
MAIN CONTENT
Pi Network's price is declining due to the impact of the Pi2Day event and the large amount of Tokens unlocked in July.
The 0.40 USD threshold serves as an important technical and psychological support level.
Updating direct application hosting aims to promote long-term development for the Pi ecosystem.
What is the main reason for the negative price trend of Pi Network?
Cryptocurrency market experts believe that recent price spikes in Pi Network are temporary and lack real capital flow. According to a report from an analyst in June 2024, emotional factors influenced the price increase before the Pi2Day event, which has been fully reflected in the price.
In addition, more than 276 million PI Tokens (accounting for 3.7% of the total circulating supply) are expected to be unlocked in July, increasing supply and selling pressure, thereby putting downward pressure on price.
"Strong surges in Pi Network usually last less than a week and do not maintain sustainable momentum due to a lack of professional buying support."
Nguyen Van Quang, Cryptocurrency Market Analyst, 2024
Why did the Pi2Day event not help maintain the upward momentum of Pi Network?
The Pi2Day event in June 2024, along with AI partnerships and new vendor listings, initially attracted strong attention from the community. However, these developments are mainly based on euphoric psychology, lacking real cash flow, so the price increase effect is only short-term and quickly cools down.
What is the significance of the 0.40 USD threshold for Pi Network's price?
Technical analysis indicates that 0.40 USD is not only an important support level on the chart but also carries significant psychological weight for investors. If the price holds this level after declines, it could form a triple bottom pattern, opening up long-term recovery opportunities for Pi Network.
How does the update on direct application hosting impact Pi Network?
The Pi Network development team has just announced the transition to directly hosting developers' applications on the platform. Technology experts evaluate this as a step to reduce technical barriers and costs, helping developers easily build DApps using Pi for payments, enhancing the Token's usability.
"Direct hosting will facilitate rapid expansion of the Pi ecosystem, attracting more developers and increasing the utility value of the Token."
Phan Thi Linh, CTO of Pi Network, May 2024
This change is unlikely to have an immediate impact on the price, but it is the foundation for sustainable development in technology and community in the future.
What are the specific benefits of directly hosting applications?
The start of managing an internal hosting system helps reduce dependence on external infrastructures, ensuring security and reducing operating costs. This encourages developers to create specialized applications for Pi, expanding Token use cases such as internal transactions, payments, or DeFi services.
What should Pi Network prepare for before the pressure of large Token unlocks?
Market experts advise investors to closely monitor the amount of Tokens unlocked in July and the market's reaction. Sudden increases in supply often come with selling pressure from individuals or organizations holding large amounts of Tokens. Therefore, staying vigilant and having a risk management plan is essential.
Short-term Impact Factor Long-term Potential Pi2Day Event Stimulates psychology, increases short-term price Limited by lack of real capital flow July Token unlock Selling pressure, price drop Helps the market be more liquid Direct application hosting Minor impact, stability Increases attractiveness for ecosystem development, expands application
Frequently Asked Questions
Will Pi Network continue to decline after the 0.40 USD threshold?
This is an important technical and psychological support level. If the price holds, a recovery may occur. However, pressure from Token unlocks remains a hidden risk.
What does the direct hosting of applications by Pi Network mean for investors?
It is a technical advancement that helps expand projects utilizing Pi Tokens, increasing value and long-term application within the ecosystem.
How will large Token unlocks affect the market?
Helps increase liquidity but may cause selling pressure, requiring investors to be cautious when holding long-term.
What should be done to minimize risks when investing in Pi Network at this time?
Closely monitor unlocking events, maintain risk management, avoid over-investing in short-term rallies based on news.
Does Pi Network have long-term growth potential?
Yes, with the hosting technology update and ecosystem expansion, the practical integration capacity will increase in the future.
Source: https://tintucbitcoin.com/pi-network-gia-xuong-duoi-040-usd/
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