Pi Coin Drops 3% Amid Stablecoin Surge, Expert Sees Optimism

Pi Coin, a cryptocurrency that has garnered significant attention, is currently facing challenges due to the rising popularity of stablecoins. The price of Pi Coin has slipped more than 3% today, falling below the $0.50 resistance level. This decline has sparked discussions among investors, with some anticipating that the cryptocurrency could slip below its all-time low of $0.4012. However, a top market expert has refuted these claims, citing key reasons for optimism.

One of the main challenges Pi Coin is facing is the soaring global demand for stablecoins. Stablecoins, which are pegged to assets like fiat currencies or commodities, offer price stability, widespread adoption, regulatory compliance, and versatile use cases. These features outpace Pi Coin's current capabilities, according to renowned trader and analyst Kim H Wong. The recent passage of the US stablecoin legislation, the GENIUS Act, through the Senate has further bolstered market confidence in stablecoins, posing a significant threat to Pi Coin's goal of becoming a widely adopted global cryptocurrency.

Despite these challenges, Pi Network has unique strengths that could mitigate the impact of stablecoins. Pi's mobile-first mining model, which requires only a daily app tap, lowers barriers to entry compared to stablecoins. Additionally, the network's 65 million users and referral-based model create a loyal base, potentially driving adoption if real-world utility improves. Pi's focus on decentralized applications (dApps) and developer platforms could also foster innovative use cases, rivaling stablecoin applications. The recent release of Pi App Studio with AI, which makes app development easy, may be a game-changer for the network. An ecosystem with many useful apps could keep existing users within the Pi blockchain and attract new ones.

As Pi Coin price continued to slip below $0.5, many are considering the risks of the crypto hitting a new all-time low. However, a market analyst has shrugged off concerns of Pi hitting a new low, citing key reasons. The analyst noted that the Pi Core Team’s holding of 90% of the total Pi Network coins is a significant factor. The team is “smart enough to avoid letting the price fall below $0.4.” Dropping below the $0.4 mark could push Pi’s market cap ranking out of the top 30 players, which could subside the crypto’s appeal among investors and make it a riskier asset. The expert noted that the Pi Core Team will “likely do its best” to keep the value of the project above the $0.4 mark.

Considering these factors, it seems that Pi Coin might witness a strong comeback ahead. However, investors should tread cautiously amid the ongoing volatile scenario noted in the broader crypto market. The relative strength index (RSI) of Pi Coin stayed at 35, indicating that the crypto is approaching an oversold condition. This oversold condition aids investors in entering the market at a lower price, which in turn could help in a strong recovery for the Pi Coin price.