Pi Network Drops 15% In A Month, Faces Bitcoin Correlation Challenges

Pi Network, a prominent cryptocurrency, has recently experienced a significant decline, with its value dropping by 15% over the past month, currently trading at $0.6077. This downturn has raised concerns among investors about the token's future prospects, as it struggles to show signs of recovery. The Chaikin Money Flow (CMF) indicator reveals that while there have been some inflows, the overall trend remains negative, with outflows dominating the market. This suggests that selling pressure continues to control the price movement of Pi Network, despite occasional positive market activity.

Alvin Kan, COO of Bitget Wallet, highlighted that Pi Network's initial surge was driven by anticipation and community mining, but the subsequent performance has been lackluster. As early users began to realize gains, the increased token supply met limited exchange listings and a developing ecosystem. Without strong utility or broader liquidity, investor demand naturally tapered off. Pi Network now faces the challenge of transitioning from early hype to long-term value delivery, a common issue for many new tokens.

Another concern is Pi Network's correlation with Bitcoin, which currently stands at -0.11, indicating an inverse relationship. This means that whenever Bitcoin experiences upward momentum, Pi tends to face declines. With Bitcoin nearing $100,000, Pi Network could struggle to capitalize on Bitcoin’s potential gains, potentially facing further corrections. Given Bitcoin’s strength, Pi may continue to decline, as its price typically moves in the opposite direction of Bitcoin’s rise. This inverse correlation suggests that even if Bitcoin reaches new highs, Pi might not benefit from the broader market rally and could face additional downward pressure.

If the current trend continues and Bitcoin’s price keeps rising, Pi Network could experience a further drop, potentially falling through the $0.6077 support level and heading toward the $0.5192 support. If the trend persists, the altcoin may approach its all-time low of $0.4000, further deepening its losses. Investors are advised to stay alert and monitor the situation closely.

Pi Network’s mobile mining and referral model helped it build a massive user base, but it also invited skepticism around sustainability. While the project clarifies that it doesn’t follow a multi-level structure, concerns persist over perceived lack of transparency and real-world use cases. To move past the debate, the focus will need to shift toward building credible utility and expanding access. If that happens, sentiment could recover—but trust takes time.

However, if market conditions improve and investor sentiment shifts, Pi Network may have a chance at recovery. A breach of the $0.8727 resistance, followed by flipping it into support, could signal a reversal. This would set Pi on a path toward $1.0000, invalidating the current bearish outlook and setting the stage for potential growth.