Key Insights
- Pi Network price crashed to a record low this week, erasing billions of dollars in value.
- The decline happened after forming a double-top and a rising wedge pattern.
- It also dropped as demand dropped and supply continued rising.
Pi Network price crashed to a record low this week as the crypto market plunged. It dropped to $0.1511, a few points below the previous all-time low of $0.1535.
It has now dived by over 93% from its all-time high, erasing billions of dollars in value. This article explores the top reasons why the Pi Coin price crashed to a record low this week.
Pi Network Price Crashed After Forming Bearish Patterns
Pi Network price crashed to a record low this week. It formed bearish chart patterns. These patterns appeared clearly on the daily chart.
It formed a double-top pattern, with its highest level on October 29 and November 28 last year. Its neckline was at $0.2030, its lowest level on November 4 last year. A double-top is one of the most common bearish reversal patterns in technical analysis.
The token also formed a rising wedge pattern, which is made up of two ascending and converging trendlines. The breakout happened after the two lines neared their confluence.
Pi Coin price also remained below the 50-day and 100-day EMAs and the Supertrend indicator.
In most cases, these patterns and technical indicators often lead to a strong bearish breakout. This explains why the token plunged on Monday and why it may continue falling in the near term.
Pi Network Price Dropped as Demand Waned
Pi Network price plunged as demand waned. Data compiled by CoinMarketCap shows that the volume dropped by 41% in the last 24 hours to $16 million.
A $16 million volume is a tiny one for a cryptocurrency with a market capitalization of $1.57 billion and a fully diluted valuation of over $18 billion. The volume-to-market capitalization ratio stood at 1.03%, indicating thin liquidity.
Pi Network has had thin demand in the past few months as it has had no major catalyst. For example, no major exchange has listed it since its mainnet launch in February last year.
Soaring Pi Network Supply
Pi Network price has crashed this week because of the ongoing supply increase. PiScan data shows that the number of Pi tokens in circulation has continued rising because of its token unlocks.
The network will unlock over 55.7 million tokens in the remainder of the month and 134 million in February. Pi will unlock over 1.25 billion tokens in the next 12 months, with the average monthly unlock being 17.1 million.
Data compiled by CoinMarketCap shows that Pi Network has a maximum supply of 100 billion tokens. Also, it has a circulating supply of 8.38 billion.
This means that there are over 91.68 million tokens that will be unlocked over time. A rising supply and falling demand often lead to lower prices.
Broader Crypto Market Sell-Off
Pi Network price has crashed because of the ongoing crypto market crash that has affected Bitcoin and most altcoins.
Bitcoin dropped to the key support level at $91,000 from the year-to-date high of $98,000. The market capitalization of all tokens also moved to a low of $3.08 trillion from the year-to-date high of over $3.3 trillion.
The decline happened due to ongoing geopolitical issues. Donald Trump announced new tariffs on goods. These tariffs targeted NATO members like France, Germany, and Denmark. It also happened after the CLARITY Act stalled in the Senate Banking Committee last week.
Centralization and Lack of Utility
Pi Network’s price has also crashed because of its core issues, including centralization and lack of utility.
Pi is one of the most centralized tokens in the crypto industry. The Pi Foundation holds over 90 billion tokens. These tokens sit in hundreds of addresses controlled by the foundation. Unlike other cryptocurrencies, holders don’t vote on any proposals.
Additionally, Pi Network, unlike tokens like Ethereum and Solana, it has not achieved any utility. It is not accepted by any retailers, while its ecosystem has become a ghost chain.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
