Pi Coin Trading Volume Drops 54% Post Pi Day Updates

Pi Coin, a cryptocurrency that gained significant attention in recent months, has experienced a notable decline in its trading volume and price momentum. Following the "Pi Day" event, where the Core Team announced several updates to the Pi ecosystem, the coin's trading volume has plummeted below $100 million. Specifically, the 8-day trading volume has dropped to $46 million, indicating a waning interest from investors and traders.

This decline in trading volume suggests a weakening momentum for Pi Coin, which could lead to a bearish price prediction in the near term. The reduced interest from whales, who are large investors capable of influencing market trends, further supports this bearish outlook. The daily token unlocks for Pi will remain high until July 10, which could exacerbate the selling pressure in the coming weeks. On July 10, 14.6 million tokens will be released to the market, followed by a gradual decrease to 10.6 million the next day and eventually to 4 million by August 4. This reduced selling pressure could potentially cushion the impact of further declines.

Technical indicators also point to a bearish trend for Pi Coin. The Relative Strength Index (RSI) is below 50 and trending downward, indicating a lack of buying pressure. The coin's 4-hour chart shows a bearish breakout from a key support level at $0.475, which could lead to a retest of its all-time low of $0.40. The failed retest of the $0.475 level further supports this bearish prediction.

The recent launch of a controversial zero-reward staking program by the Core Team has also raised concerns among investors. This program allows users to rate their favorite Pi ecosystem apps without receiving any benefits, which is an unusual proposal in the crypto ecosystem. Staking mechanisms typically offer rewards for investors in exchange for helping secure a network or reducing a token’s circulating supply. This lack of incentive could further dampen investor interest and contribute to the bearish outlook for Pi Coin.

As Pi Coin struggles to meet expectations and loses momentum on the charts, some traders are shifting their focus to other opportunities with potentially higher upside. The cryptocurrency market is dynamic, and investors are always on the lookout for the next big thing. With the current bearish trend for Pi Coin, it remains to be seen whether it can regain its footing and attract renewed interest from investors.