Today Pi Network's price has dropped to $0.45, despite Bitcoin reaching $122,000. The price decline is attributed to the increase in supply and low market interest.
Reasons for Pi Network's Low Price
Many Pi supporters admit they would love to see Pi hit $10 someday. However, this dream seems further from reality in the current market conditions. One of the biggest challenges is the rapid increase in its circulating supply, happening due to mobile mining rewards and token migration from testnet to mainnet. This led to over $37 million worth of tokens being migrated.
Low Liquidity and Developer Inactivity
The Pi community believes that rising supply, in combination with low market liquidity, is the main reason for Pi's struggles. There is little buying interest and insufficient liquidity to support price gains. Additionally, the project faces criticism for limited support from the development team. Many feel the core team is not providing enough opportunities for community contributors, which could slow innovation and erode investor confidence.
Technical Analysis and Forecast
On higher time frames, the Pi price chart shows lower lows, often a warning sign of further downside. When Bitcoin surged past $122,000 recently, Pi only touched $0.53 before crashing back down to $0.45. Furthermore, Pi is currently trapped under the 0.382 Fibonacci retracement zone, suggesting it may continue to slide unless demand picks up. The next support lies around $0.40, a level that hasn't been touched since early June.
Despite the gloomy outlook, some view this dip as a rare opportunity. While others fear the end, a few see it as a time to accumulate. However, given the rising scams and decreasing engagement, the short-term future of Pi appears shaky.
