The cryptocurrency market continues to rise, but Pi Coin faces distinct challenges. This article explores the reasons behind the current difficulties faced by Pi Coin, as well as the potential for its breakout.
Problems with Oversupply
The core issue for Pi Coin lies in oversupply. The network is unlocking a significant amount of tokens, with an expectation of 145 million new tokens in the last days of July alone. This, combined with investors pulling over 1.4 million tokens from exchanges in the past day, creates additional selling pressure.
Governance Structure and Centralization
Concerns also arise regarding the network's governance structure. The Pi Foundation controls tokens worth over $33 billion in unaudited wallets, raising red flags about centralization. This may explain why major exchanges like Binance and Upbit have yet to list Pi.
Growth Prospects and Technical Indicators
Despite the ongoing issues, technical indicators suggest a potential reversal. The token is showing signs of accumulation as volatility and trading volumes drop sharply—often a prelude to upward movement. Chart patterns like a falling wedge and a double-bottom at $0.4056 hint at a bullish setup. A breakout above $1 could push Pi towards $1.66, while failure to hold support risks further downside.
The future of Pi Coin remains uncertain. It will depend on how the market absorbs upcoming token unlocks and whether investor confidence returns.
