The Pi Network price has experienced a significant drop, falling below $1, which has raised concerns about the token's future growth.
Current Situation and Price Drop
The Pi Network price has fallen below the crucial levels of $1. As the price kept plunging, trading volume increased by more than 40%, suggesting traders might have shifted to a bearish stance. Amid the attacks on Pi on social media and some exchanges refusing to list the token, the question of a strong rebound possibility as the token has nearly reached its lowest level arises.
Deflationary Mechanisms and Impact
The Pi supply is steadily decreasing due to the removal of transaction fees from circulation. By early March, nearly 528,671 PI was burned at a rate of 3000-4000 tokens per day, although no formal coin burn announcement was made. The tokens of users who missed the KYC deadline were burned, sparking speculation that this deflationary mechanism could positively impact its value.
Future Prospects and Uncertainty
Short-term price action of Pi suggests the token reached one of the lowest points after its mainnet launch. The bearish influence prevails despite price testing the lower support of the falling wedge. This might point towards an extended bearish trend, dragging levels below $0.65, while technical indicators hint at a potential rebound. Stochastic RSI has reached the oversold zone, and if it consolidates as in previous times, then Pi price is expected to remain around $1.
Optimism around the Pi Network rally fades quickly as uncertainty over the open mainnet launch and lack of a clear roadmap has negatively affected investor confidence. With no clear timelines, the future of the token remains vague, prompting speculation and calls for caution.
