Pi Network's Price Drops 18% to $0.45 as Supply Surges

Pi Network's price has experienced a significant decline, falling to $0.45, while Bitcoin has surged to a new all-time high of $122,000. This drop in Pi Network's value can be attributed to several factors, including a rapid increase in its circulating supply, weak demand, and low market liquidity. Despite the growth of the Pi Network's mainnet, the price of Pi Coin remains stagnant, trading around $0.45.

One of the primary challenges facing Pi Network is the rapid increase in its circulating supply. As mobile mining rewards are continuously unlocked and more tokens migrate from the testnet to the mainnet, the supply of Pi Coin is growing faster than the demand. This imbalance has resulted in over $37 million worth of Pi tokens being migrated to the mainnet, further exacerbating the supply-demand issue.

The Pi community believes that the combination of rising supply and low market liquidity is the main reason for Pi Coin's struggle to gain value. There is very little buying interest, and the lack of liquidity makes it difficult for the price to rise. Additionally, the project is facing criticism for limited support from the developer team. Many community members feel that the Core Team is not providing enough space for community developers to contribute, which could be slowing innovation and shaking investor confidence.

Technical analysis of Pi Coin suggests that there may be further downside ahead. On higher time frames, the Pi price chart is showing lower lows, which is often a warning sign of further declines. When Bitcoin surged past $122,000, Pi Coin only briefly touched $0.53 before crashing back down to $0.45. Currently, Pi is trapped under the 0.382 Fibonacci retracement zone, suggesting it may continue to slide unless demand picks up. The next support level lies around $0.40, a level which hasn't been touched since the beginning of June.

Despite the gloomy outlook, some in the community see this dip as a rare opportunity to accumulate more Pi Coin. However, with scammers outpacing community trust, engagement dropping, and more unlocks on the way, Pi’s short-term future looks uncertain. The question now is whether Pi can recover from this deep correction or if this marks the beginning of a longer crypto winter.