Pi Network Price Eyes Steeper Crash as New Initiatives Fall Short

Pi Network price shows a strong downward trend. It has erased billions in value. It now ranks among the top laggards in the industry.

Pi Coin was trading at $0.182 on Saturday, down by over 93% from its all-time high. This article explores why it is eying a steeper crash in the near term as its initiatives fall short.

Pi Network Team Has Made Numerous Initiatives to Boost its Value

Pi Network price has been in a freefall in the past few months. It has continued to underperform the broader crypto industry. This crash happened despite the team’s efforts to boost its value and activity.

The most recent initiative was the launch of a payment library and SDK. This upgrade will make it easier for developers to integrate payment solutions into their applications without coding. Instead, a process that would take days will now take less than ten minutes.

Another update came out this week when the developers announced major news on the Pi App Studio. They plan to launch a major upgrade of the platform and introduce new features.

For example, the new upgrade will include the payment features and ways to route apps for development.

Meanwhile, the Pi Coin crashed even after the developers introduced a new AI approach to conducting KYC for its pioneers. The new way means that the network is now handling millions of KYC a month.

The other major Pi Network news was the strategic investments in OpenMind and CiDi Games. OpenMind is a major player in the artificial intelligence industry. At the same time, CiDi Games is building games compatible with its network.

Meanwhile, Pi Network published a white paper for MICA approval. If granted, it would become the first cryptocurrency to receive the certification.

Why Pi Network Price Has Crashed?

There are a few reasons why the Pi Networkprice has crashed despite all these initiatives. First, its demand has dropped sharply in the past few months.

For example, CoinMarketCap data shows that its 24-hour volume stood at over $9.5 million when writing. This amount is negligible considering that the broader crypto industry had over $95 billion in volume.

Second, the ongoing demand weakness coincided with the daily increase in supply through its token unlocks. Data shows that the network has unlocked over 130 million tokens this month. It will then unlock 136 million tokens in February and over 1.2 billion in the next 12 months.

Therefore, with Pi, we have a coin whose supply is rising aggressively as its demand wanes. Third, while the new initiatives are good, they don’t address key challenges facing the network.

For example, Pi Coin has never received any more exchange listings since February last year. Major exchanges like Coinbase and Binance have refused to list it. This means that it is not available to millions of users.

Additionally, Pi’s team has never addressed the centralization challenge. The Pi Foundation still holds billions of tokens across hundreds of exchanges. The Core Team makes all decisions. They act without consulting the community.

Most importantly, Pi is still a ghost chain with no major applications in its network. This is unlike Ethereum and Solana that have thousands of applications.

Pi Network Price Technical Analysis

Technical analysis also explains why the Pi Coin has crashed in the past few months. It has remained below all moving averages, a sign that bears are in control.

The token formed a double-top pattern at $0.2805 and a neckline at $0.2035, its lowest level in November. A double-top is one of the most common bearish signs in the market.

Therefore, the most likely scenario is where the token continues falling in the near term. If this happens, the next key level to watch will be the all-time low of $0.1525. A move below that level will point to more downside, potentially to $0.10.