The Pi Network (PI) token faces market difficulties despite the recent introduction of two-factor authentication (2FA) to enhance user security. This measure is part of the transition to the Open Network mainnet, amidst technical changes and market pressures.
Drop in PI Token Price
The Pi Network (PI) token has been on a consistent decline for the past 13 days after a brief recovery above $1.79 on March 13. Currently, the price faces significant resistance at the $1 level and has lost over 3% of its value in the past 24 hours. Market pressures include token unlocks, increased activity on centralized exchanges, and a lack of major exchange listings. Over the past week, PI's value has dropped more than 20%, moving from 17th to 27th in market rankings, according to Coingecko data. The market cap now stands at $6.2 billion, reflecting a loss of over $1.4 billion during the same period.
PI/USDT Chart Analysis
Analysis of the PI/USDT chart on TradingView highlights a falling wedge pattern on the 4-hour timeframe. This pattern, often considered bullish, forms when an asset's price consolidates between two downward-sloping, converging trendlines. Despite consistent lower lows and lower highs, the narrowing price range points to decreasing volatility.
Breakout Potential
The falling wedge pattern suggests growing buyer interest as selling pressure diminishes, potentially leading to a breakout above the upper trendline. Resistance levels further support this possibility. Despite PiDaoSwap being added to the Pi ecosystem, buyer confidence remains low, with PI currently trading around $0.91. Traders often watch for a breakout above the wedge’s upper trendline as a potential entry signal, while considering other indicators for confirming price direction.
Pi Network continues to face technical and market challenges. The introduction of 2FA provides an important step towards enhanced security, yet the PI token remains pressured by market conditions. Close monitoring of market trends and technical indicators will aid traders in evaluating future prospects.
