Pi Coin's price experienced a sharp decline of 35% on Friday, coinciding with news of military strikes by Israel on Iranian targets, which led to a negative response in the altcoin market.
Price Drop of Pi Coin
Data from CoinMarketCap showed that PI dropped from $0.62 to as low as $0.40 during early trading hours. Although the token briefly recovered to $0.55, it remains far below its 30-day high of $1.27, reflecting a 53% loss. The 24-hour trading volume surged by 276%, indicating that holders might have offloaded their positions amid fears of further declines.
Volatility After Announcement
The price volatility occurred just weeks after the crypto community began speculating about the Pi Network Core Team's upcoming announcement, scheduled for early May. A bullish trend ensued, leading to a price spike from $0.60 to nearly $1.70, but prices began to plummet even before the announcement was made public. Following the team's reveal of plans to invest in Pi Network-native projects, the price corrected to just over $0.60.
Market Reaction and Predictions
Data from PiScan indicates that over 340 million PI tokens are set for release over the next month, likely increasing supply and putting further downward pressure on prices. Investors eagerly awaiting token liquidity may choose to cash out once their assets become available, resulting in heightened sell-side activity and exacerbating the existing downturn in the altcoin market. Market analyst Moon Jeff remarked that although altcoins had begun to recover in early June, the recent events returned the market to a bearish sentiment. Bitcoin and Ethereum also faced significant declines, adding to the overall strain on altcoin prices.
Currently, PI coin shows no clear bullish or bearish trend. The market appears to be stagnant, and analysts warn that until buyers emerge with conviction or a new announcement shifts sentiment, the price may remain trapped.
