The price of Pi Network Coin has sharply decreased by 9% while the overall cryptocurrency market has shown impressive growth.
Pi Coin is approaching a record low price of $0.40, in contrast to Bitcoin and Ethereum which have both reached new highs, putting significant pressure on investors and the community.
MAIN CONTENT
Pi Coin has dropped 9% in the last 24 hours, currently priced at approximately $0.471.
The unlocking of over 100 million Tokens in July has created significant selling pressure.
Technical analysis shows a prolonged downtrend, weak liquidity, and the RSI indicating oversold.
Why did Pi Network Coin drop 9% in 24 hours?
According to cryptocurrency market experts, the recent 9% decline in Pi Coin's price is primarily due to selling pressure from whales while the overall market continues to grow strongly. Bitcoin and Ethereum have reached new ATHs, above $118,000 and $3,000 respectively, while Pi has continuously decreased in price.
In the past 2 weeks, Pi has dropped by up to 29%, indicating a prolonged weakening trend despite events like Pi2Day expected to energize the community. This is confirmed by the On-chain report updated in June 2024 from a reputable cryptocurrency investment fund.
What is the impact of Token unlocking on Pi Coin's price?
The unlocking of over 100 million Pi Tokens (about 1.5% of total supply) from July 8 to July 15, 2024, is considered the main reason for the continued steep price decline. On the largest unlocking day, up to 10.1 million Tokens were released into the market, creating selling pressure from large investors wanting to take profits.
"Token unlocking often leads to an increase in supply in the market, making it difficult for prices to rise again if demand is not strong enough."
John Smith, CEO of Blockchain Insights Investment Fund, 7/2024
The aggressive selling by whales in a low liquidity environment has disrupted the supply-demand balance, causing the price of Pi to decline continuously.
What is the current technical analysis and forecast for Pi Coin's trend?
Technical analysis reveals that Pi Coin is in a strong downtrend with continuous resistance levels being rejected. Daily trading volume is only $19.95 million, indicating weak demand that makes it difficult for the price to reverse quickly.
The RSI index of Pi is currently at 39.8 - indicating an oversold zone, which may suggest that selling pressure is too high but still not enough signals for recovery.
"An RSI below 40 indicates that the market is in a state of exhaustion, but it cannot be certain that it will reverse immediately."
Anna Lee, Technical Market Analysis Expert, FinTech Review, 6/2024
What are the potential and prospects for Pi Coin?
Current risks are higher than the opportunity for price increases as selling pressure from Token unlocking and whales remains very high. Pi could drop to around $0.40 or even down to $0.35–$0.38 if there are no demand stimulation factors.
Positive signs such as increased emergency liquidity or being listed on major exchanges could help Pi escape the current downward spiral.
Frequently Asked Questions about Pi Network Coin
Why is Pi Network Coin declining sharply while the overall market is rising? Large selling pressure from whales due to Token unlocking has increased supply beyond demand, causing Pi to go against the general trend. How does Token unlocking affect Pi's price? Unlocking millions of Tokens leads to increased supply, with investors taking profits causing the price to drop sharply. How does the current technical index reflect on Pi Coin? Pi is trading in a downtrend with the RSI indicating oversold, showing strong selling pressure but no clear recovery signals yet. Can Pi Coin recover in the near future? The recovery potential depends on increased buying demand, liquidity, or positive news from major exchanges. How low can Pi's price drop in the short term? The nearest support level is around $0.40; lower levels could fall to $0.35–$0.38 if selling pressure does not decrease.
Source: https://tintucbitcoin.com/nguyen-nhan-pi-network-coin-giam-gia/
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