Pi Network’s PI Token Drops 17% Amid Market Volatility and Transparency Concerns

Pi Network’s native token (PI) has experienced a significant decline, dropping to $0.611, marking a 17% decrease in recent trading sessions. This downturn comes amidst broader crypto market volatility, particularly following the Mantra (OM) token crash, which saw a 90% drop before recovering 30% of its value over the weekend. The price drop places pi at its lowest point in the past week, testing critical support levels around $0.60. Many traders are now questioning whether PI can regain momentum or if further declines are imminent.

Pi Network’s price struggles are exacerbated by growing concerns about the project’s transparency. Community members have expressed doubts about token economics and the limited public outreach from the Pi Core Team. The recent market instability has amplified calls for greater openness. Users are particularly frustrated with the opacity of internal mechanics and the closed nature of testnet and KYC processes. This lack of clarity coincides with the upcoming release of 1.5 billion tokens scheduled for this year. The increased supply, combined with stagnant demand, creates natural downward pressure on price. PI remains absent from major cryptocurrency exchanges like Binance and coinbase. This limited availability restricts potential buying interest that could otherwise help stabilize the token’s value. The combination of these factors has contributed to eroding investor confidence at a critical time for the project.

Technical analysis shows bearish signals for PI. On the daily chart, PI has established a pattern of lower highs and lower lows. These key levels at $0.84 and $0.52 will determine the next market structure break. The Money Flow Index (MFI) on the daily timeframe has climbed from oversold territory toward overbought conditions over the past two months, suggesting some bullish capital flow. However, the Accumulation/Distribution (A/D) indicator continues its downward trend, albeit at a slower pace in April, indicating that buying volume remains low despite the MFI readings. On the 4-hour chart, PI is heading toward the 50% Fibonacci retracement level at $0.595. The MFI sits at 23, just above oversold territory, showing strong selling pressure. The recent breach below $0.71 represented a bearish market structure break. Support levels at $0.595 and $0.55 will likely be tested in the coming days.

Short-term trading patterns on the 5-minute chart show a bearish movement with descending resistance. The price range between $0.605 and $0.610 serves as a key accumulation zone after multiple tests. Two major barriers exist near $0.630 and $0.660, with sellers maintaining control of the current market structure. The Relative Strength Index (RSI) has dipped into oversold territory twice, indicating potential short-term bottoms and rebound opportunities. These oversold conditions align with MACD golden cross signals, suggesting brief bullish momentum within the broader downtrend. Despite these short-term indicators, the overall bias remains bearish until a confirmed breakout above the descending trendline occurs.

For PI to reverse its downtrend, several key developments would need to occur. First, a breakout above $0.620 with substantial volume would provide bullish confirmation. The price needs to overcome resistance at $0.7822, a level it recently tested but failed to maintain. Some analysts suggest that introducing a token burning mechanism could help address supply inflation. By moving tokens to inaccessible wallets, the circulating supply would decrease, potentially stimulating demand. The Pi Network team must also address privacy concerns before they become larger issues. The recent Mantra token collapse serves as a cautionary tale of what can happen when such matters aren’t properly managed.

Cryptocurrency analysts have taken an increasingly bearish stance on PI’s short-term prospects. Some predict a potential drop of up to 55% in the coming weeks. This forecast is based primarily on the token’s supply dynamics and current technical indicators. If key support at $0.395 breaks, PI could experience even greater downward pressure as market sentiment continues to deteriorate. Traders are advised to watch for a high-volume breakout or breakdown as the asset consolidates between zones. With patience being key during this period of consolidation, many experts recommend waiting for clearer signals before taking positions. The Pi Network’s future price action will likely depend on how effectively the team addresses both market concerns and technical development milestones in the days ahead.