Ranked 24th, the cryptocurrency Pi Coin had a fervent following among early miners but has now faced significant setbacks. This once highly anticipated cryptocurrency has plummeted nearly 75%, leaving investors disheartened. Long-term holders who have been mining Pi Coin for many years are now starting to question their investments as the market remains skeptical about Pi. Cryptocurrency investors and analysts
Investographer analyzed where things went wrong and whether Pi Coin can recover from this vicious cycle.
Hype vs. Harsh Reality
Pi Coin was officially launched recently and gained significant attention in just a month to a month and a half. Enthusiastic investors and long-term miners had high hopes for its performance. However, its market performance has fallen far short of expectations. Those who firmly believed in Pi Coin and its ecosystem now face a harsh reality.
Initially, the price of Pi Coin surged, reaching nearly $3 on its listing day. However, this excitement was short-lived. By February 26, the token attempted to reclaim the $3 mark but quickly began to fall significantly. In just a few days, Pi Coin plummeted nearly 75%, dropping to about $0.74. It is currently hovering around its historical low of $0.60, indicating further bearish momentum.
Why did Pi Coin crash?
According to analyst Investographer, one of the main reasons for the decline of Pi Coin is Binance's refusal to list it. After Binance conducted a poll on whether to list Pi Coin, the community had high hopes. Despite strong support from Pi Coin holders, Binance ultimately declined to list it.
Another key factor is the lack of a fully open mainnet. Unlike truly decentralized cryptocurrencies, Pi Coin operates in a highly controlled and closed ecosystem. This limits the token's liquidity, transparency, and free trading. Users cannot freely buy, sell, or transfer their Pi holdings, raising concerns about centralization.
Technically, what happened?
Pi Coin is approaching critical technical levels. The recent support level is at $0.60, while short-term support is around $0.77. If the price falls below $0.77, it could further drop to $0.70, even testing $0.60. On the upside, the main resistance levels are at $1 and $1.20, and both of these resistance levels need to be broken for any significant rebound. Key indicators like RSI are also hovering near oversold territory, reflecting that the bearish phase will continue.
Will Pi rebound?
The future of Pi Coin largely depends on whether the project can address concerns surrounding decentralization and liquidity. If buyers step in, Pi Coin could break resistance levels and rise to $1.22, with a chance to reach $1.8050 if bullish momentum continues. However, if sellers control the market, the price could drop to $0.64, and failing to hold this level could lead to a new all-time low.
