The recent decline in the value of Pi Network has attracted investor attention. The main factor contributing to the price drop is the increasing supply of tokens in the market.
Reasons for the Price Decline of Pi Network
The Pi coin price fell to $0.60, which is 21% lower than its peak this month. The main reason for the sell-off is the increasing supply of tokens. According to PiScan, over 105 million tokens will be unlocked this month.
Potential Solutions for Price Recovery
One potential solution to mitigate token dilution is a large-scale burning operation by the developers. For instance, on-chain data shows that the Pi Foundation holds over 70 billion tokens. They might also consider burning part of the fees generated from decentralized applications in their ecosystem.
Current Technical Situation in the Market
The 4-hour chart shows that the Pi coin price has come under pressure. After reaching a resistance level of $0.7860, the price dropped to $0.6085, aligning with an important support level. Currently, the coin may experience a bearish breakout, with an initial target at $0.40.
Reducing token supply and implementing burning mechanisms may provide an opportunity for price recovery for Pi Network. Investor focus on these aspects may influence the market.
