Pi Network Price Drops 20% in a Week, Faces 55% Crash Risk

The Pi Network, a prominent cryptocurrency project, has recently encountered a notable price decline, hitting a low of $0.6445, its lowest point in the past week. Despite this drop, the Pi token remains higher than it was a few weeks ago. However, a leading crypto analyst has forecasted that the Pi Network price could experience a further decline of up to 55% in the coming weeks.

The Pi Network's attempt to recover has been met with resistance, reaching a high of $0.7822 before falling below this critical level. This indicates market uncertainty and a lack of momentum to drive the price higher. The analyst suggests that the Pi token is likely to face further downside pressure due to the increasing supply of tokens on exchanges. According to Pi Network’s tokenomics, over 1.5 billion tokens are set to be unlocked this year, adding more supply to the market. The Pi Network has not been listed on major exchanges, which limits the demand for the Pi coin. As the supply continues to increase, the demand remains stagnant, leading to a price downturn.

Technical indicators also point to a bearish outlook for the Pi Network. The Pi Network has formed a pattern of rising levels on its four-hour chart, suggesting that the price could continue to fall. Following a recent rally, the price has struggled to maintain its momentum, leading most analysts to believe that the coin might soon reach crucial support levels. The falling wedge pattern triggered a temporary price surge, but this momentum was unsustainable as it faced resistance at the $0.7822 level. The bearish outlook is further supported by selling pressure, and the Pi token is expected to challenge its key support at $0.3945, its lowest level this month. If this key support level breaks, the Pi coin will continue to experience downward pressure, and as market sentiment grows increasingly bearish, many are speculating that the Pi Network price could fall further.

Several factors could influence the future of the Pi Network. One potential solution for the Pi token is to introduce a burning mechanism, where tokens are moved to inaccessible wallets, effectively reducing the circulating supply. Such a move could help curb inflation in the market, potentially driving up demand for the token. Another critical issue is privacy. As the Pi token gains more attention, ensuring its privacy features are robust is essential. If not handled properly, privacy concerns could lead to a collapse similar to what was seen with Mantra. To avoid such an issue, the Pi Network team must address these concerns proactively.

The Pi Network price faces significant challenges in the coming weeks. With the ongoing increase in supply and a lack of sufficient demand, many crypto experts are predicting that the Pi token could see a 55% crash. As the future of the Pi Network unfolds, the team must take proactive measures to address both its supply strategy and privacy concerns to prevent a steep decline. If the situation remains unchanged, the Pi token may continue to see downward pressure, making it a risky asset for potential investors in the short term.