The price of Pi Network's PI token dropped more than 32% over the last 24 hours, despite the announcement of a $100 million fund aimed at supporting startups.
Announcement of the Fund and Its Goals
On May 14, the Pi Foundation announced the launch of a new fund, Pi Network Ventures. This fund is aimed at supporting startups that create real-world applications and promote PI adoption. It will support companies in the areas of generative AI, gaming, FinTech, e-commerce, social media, and blockchain, functioning like a Silicon Valley venture capital firm.
Market Reacts Negatively
Despite the significant news, the market response was negative. The price of PI fell from a high of $1.30 to a low of $0.8183, stabilizing at $0.87. Many traders may have been anticipating a major exchange listing, which would provide liquidity and price discovery. Without it, the announcement may have left a sense of underwhelming, leading to the classic 'sell the news' move.
Technical Analysis and Future Forecasts
From a technical perspective, PI is still somewhat strong. It trades above important moving averages such as the 50-day SMA and 10-day EMA, which are bullish indications. The RSI is at the neutral level of 57.24, while the MACD suggests short-term upside. If PI stays above $0.85, it may bounce back to $1.10. However, if it drops below, a retest of the $0.74 support is possible.
For the moment, investors appear to be rethinking their positions. As short-term traders leave, Pi Network continues to build, betting on long-term growth through real-world adoption.
