Pi Coin Drops 26% in 30 Days Amid Supply Increase

Pi Network's native token, Pi Coin, has experienced a significant decline in value, currently hovering near its all-time low. Over the past 30 days, the token has dropped by 26%, resulting in a market capitalization of $3.4 billion. This decline is notable given that Bitcoin and most altcoins have seen rallies during the same period.

The Pi Network has introduced several bullish catalysts that could potentially drive the token's value higher. One of the key developments is the launch of Pi AI Studio, a tool designed to enable users to build and launch AI-powered applications quickly. This positions Pi Network as an artificial intelligence token, potentially attracting developers and users interested in AI technologies.

In addition to Pi AI Studio, the Pi Network ecosystem includes other tools such as .pi domains, an online wallet, and an advertising network. These tools are aimed at supporting developers by making it easier to create and monetize applications within the Pi Network ecosystem. The platform also introduced a staking mechanism on Pi2Day, allowing pioneers and businesses to stake tokens to support and promote the ranking of Pi applications within the ecosystem interface. Some of the top-staked apps include Fruity Pi, Maps of Pi, and Thepitogo Services.

Despite these positive developments, the Pi coin price has plummeted. One likely reason is the daily increase in supply due to token unlocks. According to PiScan data, 130 million more coins will be unlocked this month, bringing the circulating supply to over 8 billion. However, the pace of token unlocks is expected to slow over the next three months, with 139 million tokens to be unlocked in August, followed by 117 million in September and 93 million in October.

Another bullish factor is the potential for a prolonged crypto market rally. Many altcoins, especially the cheaper ones, tend to perform well when Bitcoin is rallying or during an altcoin season. Additionally, there is still a slim chance that one or more exchanges will list Pi Coin this year, with notable exchanges including tier-1 names.

Technical analysis of the Pi Coin price shows several bullish structures. Notably, it has formed a double-bottom pattern at $0.4087, marking its lowest swing levels in April and June. The token has also formed a falling wedge pattern, a common bullish reversal indicator. As a result, the token is likely to bounce back and potentially retest the psychological level at $1. A move above that level would open the door to further gains toward the double-bottom’s neckline at $1.66.

The double-bottom pattern is a classic technical analysis indicator that suggests a reversal in a downtrend. It occurs when the price of an asset forms two consecutive lows at approximately the same level, followed by a rally. The falling wedge pattern, on the other hand, is a bullish reversal pattern that forms when the price of an asset makes a series of lower highs and lower lows, creating a wedge shape on the chart. The price of Pi Coin has recently broken out of this pattern, indicating a potential bullish trend.

The rebound in Pi Coin's value could be attributed to several factors. One possible reason is the overall market sentiment towards cryptocurrencies, which has been improving in recent months. As the market becomes more bullish, investors may be more willing to take on riskier assets like Pi Coin. Additionally, the recent accumulation of Pi Coin by large investors could be driving up the price. However, it is important to note that the cryptocurrency market is highly volatile and unpredictable. While the technical indicators suggest a potential rebound, there is no guarantee that the price of Pi Coin will continue to rise. Investors should exercise caution and conduct their own research before making any investment decisions.