Pi Network's PI token has sparked debates in the crypto community, showing sharp price swings and captivating new investors.
Current Situation with the PI Token
Following years of development, the Pi Network launched its open network and token on February 20. The PI token's price experienced sharp fluctuations in its initial trading days, dropping from $1.8 to $0.7 and reaching a peak of $3. However, it then fell by over 30% within a week, losing its position in the top cryptocurrencies.
Factors Influencing the Price
The price drop is believed to be linked to the massive amount of unlocked PI tokens in the first month of its official existence. The team reported a decrease in supply to 6.7 billion tokens. The current circulating supply is about 1.7 billion tokens since some users have not completed verification, leaving their tokens locked.
Analyst Predictions
A Vietnam-based channel dedicated to Pi Network points out that the number of unlocked tokens should significantly decrease next month, which might affect supply and demand dynamics. Analysts highlight that the PI/USDT pair is moving within a descending channel, and a breakout could reverse the trend.
The PI token has potential for price recovery, supported by the declining number of unlocked tokens and positive technical signals from analysts. Monitoring supply-demand changes will be crucial in evaluating the token's future prospects.
