The Pi Network has encountered a notable decline, driven by several factors, including shifts in global market dynamics and increased token supply.
Market Dynamics and Increased Token Supply
The global cryptocurrency market is adopting a cautious stance due to inflation expectations. Analysts emphasize that the pullback from risk assets has significantly affected many cryptocurrencies, including Pi Network. Despite an increase in trading volume for Pi Network, the decrease in price indicates significant selling pressure. A total of 126 million tokens left the Pi Core Team’s wallet, raising concerns in the market. However, the PiScan platform clarified that these movements were part of 'routine distributions'. Moreover, the anticipated release of 23 million tokens daily over the next month presents a risk of supply-demand imbalance.
Support Levels and Potential Upswing Scenarios
Technical analysts identify a critical support level for Pi Network at $1.05. If this level holds, the asset could test resistance at $2.40-$2.60. Analyst Rose Premium Signals notes that a strong movement from support may trigger a new upward trend.
Long-term Prospects and External Factors
Reports about Pi Network's potential as a payment method in the real estate sector positively influence long-term expectations. However, in the short term, warnings are issued that overall market volatility and increased token supply may pressure prices. Events like the upcoming 'Pi Day' in March are expected to create a positive psychological impact.
Shifting market dynamics and other external factors pose challenges for Pi Network, questioning its short-term stability. Nonetheless, certain promising directions hold hope for potential recovery and growth in the long term.
