Pi Network Price Plummets 45% Amid Market Volatility

The pi network, a cryptocurrency project that gained significant attention, has experienced a dramatic price collapse. Initially, the Pi Network price peaked at nearly $3 following an airdrop in February, but it has since plummeted by 45% to below $2. This decline is particularly notable when compared to the $100 price point that the Pi Network's IoU (Investment of Understanding) reached in November of the previous year. The reasons behind this price collapse are multifaceted and reflect broader trends within the cryptocurrency market.

The primary reason for the price drop is the distinction between the Pi Network IoU and the current Pi Network token. Several exchanges, including BitMart and HTX, listed the Pi Network IoU in 2022 due to growing impatience among pioneers who were concerned about the delayed mainnet launch. These IoUs served as proxies for the Pi Network project until the mainnet launch occurred this year. HTX, whose token peaked at $100 in November, delisted the IoU ahead of the mainnet launch and has since listed the main token. This transition has led to a significant price correction.

Another factor contributing to the price decline is the performance of recently launched tokens. Many new tokens, such as Grass, Hamster Kombat, and Wormhole, have experienced similar drops from their highest levels post-airdrop. This trend is not unique to the Pi Network and reflects the broader volatility and uncertainty in the cryptocurrency market.

Concerns about future Pi coin token unlocks have also played a role in the price drop. A significant number of tokens, totaling 188 million, are set to be released this month, with over 1.4 billion expected to be unlocked by December. Token unlocks can lead to dilution, negatively impacting existing holders and contributing to the price decline.

Additionally, the much-anticipated listing of Pi Network on major exchanges like Binance remains uncertain. While most participants in the Pi coin listing poll voted in favor of the listing, the exact date has not been confirmed. Other major exchanges, such as coinbase and Upbit, have also not listed the Pi Network token, further contributing to the price drop.

The ongoing trends in the broader cryptocurrency industry have also affected the Pi Network price. Most cryptocurrencies, including Bitcoin, have experienced significant drops. Historically, altcoins have shown a close correlation with Bitcoin's price movements, and the Pi Network is no exception.

Looking ahead, the Pi Network is still in its price discovery phase. Critics argue that the coin's best days are behind it and that its upside potential is limited. Proponents, however, believe that the coin could follow Bitcoin's price trajectory and surge to $100 or higher over time. However, for the Pi Network price to reach $100, it would need to increase by over 5,700% from its current level. Such a move would bring its market cap to over $700 billion and its fully diluted valuation to $10 trillion, making it larger than the current size of the entire cryptocurrency market.

The technical analysis of the Pi Network price chart shows that the token peaked around $3 in February and has since retreated. It remains slightly above the ascending trendline that connects the lowest swings since February 23. This trendline is likely the neckline of a head and shoulders pattern, a popular bearish indicator. Additionally, the Pi Network has formed a rising wedge pattern, suggesting a potential bearish breakdown in the coming days. A move above the resistance at $2 would invalidate this bearish forecast.