Pi Coin (PI) has seen a significant drop in value, falling below the $1 mark. Over the past 24 hours, it has lost more than 18% in value, raising concerns among investors. If PI fails to maintain its $0.95 support level, further declines to $0.87 are likely. However, a shift in sentiment could see it rise back to $1.34 and beyond.
Reasons Behind Pi Coin's Decline
One of the main factors contributing to Pi Coin's sharp decline is the delay in its listing on major exchanges such as Binance and Coinbase. Both platforms had previously hinted at the possibility of listing PI, sparking speculation and optimism among investors. However, the lack of an official listing has dampened market sentiment and reduced demand for the cryptocurrency, leading many to question the coin's future and viability in the broader market.
Supply Reduction and Deflationary Factors
Pi Network has not formally announced a coin burn, yet the supply is steadily decreasing due to various mechanisms. Transaction fees are permanently burned, with over 528,671 PI tokens burned by early March at a rate of 3,000–4,000 tokens daily. Tokens held by users who missed the KYC deadline have also been burned, further decreasing the total supply to approximately 6.8 billion tokens. These measures aim to address fake and abandoned accounts, but they have also intensified the perception of a reducing supply.
Investor Sentiment: Concerns or Legitimate Worries?
The steep drop in Pi Coin's value has sparked widespread fear, uncertainty, and doubt (FUD) in the market. Sentiment has worsened by 80% within a single day, with some users claiming manipulation and panic selling. Trading volume has decreased by 37%, indicating a reduction in market activity.
Pi Coin faces multiple challenges, including declining demand and deflationary pressures. However, the future of the coin depends on its ability to maintain its position and recover. While difficulties persist, positive shifts in investor sentiment could catalyze a recovery.
