The Pi Network's token, known as PI, has experienced a 6.7% drop amid a muted response to the launch of the .pi domain auction.
Launch of .pi Auction and Its Consequences
The Pi Network team hoped to attract more investment numbers with last week’s update on its .pi domains auction. This announcement introduced a new feature that allowed users, referred to as 'Pioneers', to acquire custom .pi domains. 'Pioneers can view domains with the most bids, highest price, and recent trending bids,' the official announcement stated.
Pressure on Support Levels and Trading Volume
In the last day, trading volumes for the PI token surged by 60%. Simultaneously, there has been an increase in inflows on centralized exchanges, indicating a possible token dumping market. The token is consolidating around a support zone between $0.57 and $0.60, which has become a pivot point for traders after the token plunged from $1.50 to $0.40 in March.
Centralized Exchange Activity and Market Outlook
According to data from PiScan, in the past 24 hours, Gate.io has recorded the largest net deposit of 1,336,196 PI. At the same time, analysts suggest that noticeable outflows from the Pi Foundation's wallet may weaken the PI token's market position. In the absence of strong buying pressure, PI may remain trapped in a narrow range with a bearish tilt.
Despite the potential for a minor price correction for the PI token, current conditions suggest a continuation of sideways or downward movement without any clear catalysts for price growth.
