Pi Coin Drops 3% as Stablecoins Gain Traction

Pi Coin (PI) has experienced a decline in price, slipping below the $0.50 mark this week, which has intensified its bearish trend. This decline comes as the adoption of stablecoins continues to rise, potentially impacting Pi Network’s growth prospects. At the time of writing, Pi is trading at $0.4908, reflecting a decrease of over 3% in the past 24 hours.

Currently, Pi is trading within a range of $0.5142 and $0.4834, with its Relative Strength Index (RSI) at 35. This RSI level indicates that the token is entering oversold territory, which historically has created buying opportunities for traders looking to enter at lower levels.

One of the primary reasons for Pi’s struggle to maintain momentum is the increasing popularity of stablecoins. Stablecoins like USDT and USDC, which are pegged to real-world assets, offer unmatched price stability, strong regulatory clarity, and wide adoption. These features are currently lacking in Pi Network’s model, giving stablecoins a competitive edge. The passage of the GENIUS Act in the US Senate has further boosted investor confidence in stablecoins, making them more attractive compared to volatile tokens like Pi Coin.

Despite these challenges, Pi Network has several unique strengths that could support future growth. These include its mobile-first mining approach, a massive user base of 65 million, and a simple referral system. Additionally, the recent rollout of the AI-powered Pi App Studio, which allows for no-code app creation, is seen as a significant step toward building real-world use cases that can compete with stablecoins.

The biggest concern among Pi holders is whether the price could crash below its all-time low of $0.4012. While market sentiment is uncertain, one veteran analyst has dismissed these concerns, noting that the Pi Core Team controls nearly 90% of the total supply and is unlikely to let the token slip under $0.40. If Pi Coin were to lose that level, its market cap could tumble out of the top 30 crypto assets, further denting investor confidence. To prevent this, the core team is expected to hold the floor above $0.4, keeping Pi relevant and positioned for a potential rebound.

While Pi Coin faces intense competition from stablecoins, its oversold RSI and strong core team backing suggest that a short-term bounce is possible. Long-term recovery will depend on how effectively Pi Network can deliver real-world utility through its expanding ecosystem. The wider crypto market remains cautious, with the total crypto market cap falling slightly to $3.29 trillion, and both Bitcoin and Ethereum seeing minor losses.