The price of Pi Network (PI) is facing serious risks of crashing, linked to a sharp increase in coin reserves in centralized exchanges and declining trading activity.
Rising Exchange Reserves
In the past three months, the number of PI coins on centralized exchanges has grown by 30%, from 263 million to 345 million coins. Typically, when coins are moved to exchanges in large amounts, it signals that sellers might be preparing to cash out. There is also an outflow from wallets connected to the Pi Foundation team, raising concerns among traders regarding potential sell-offs.
Declining Trading Volume
The trading volume of Pi Network has dropped by 90% over recent weeks, falling from over $5.4 billion to under $500 million. Reduced market activity means that every new surge in supply could destabilize the price, and even a small sell-off could lead to significant declines.
Future Outlook
Crypto analyst Dr. Altcoin suggests that PI could drop as low as $0.40, especially if no major updates or announcements are made by June 28. While some still hope for a rebound to $1.70, the current outlook appears bearish. Currently, PI is trading around $0.56, reflecting a 1.4% drop in the last 24 hours.
The current situation surrounding Pi Network leaves traders anticipating updates from the team. The rise in exchange reserves combined with falling trading activity presents heightened risks for investors.
