Pi Network's Early Hype Fades Amid Market Challenges

Pi Network is at a critical juncture following the initial excitement of mobile mining and referral-based growth.

The price of Pi Coin (PI) has risen by 8.40% in the past day, reaching $0.6244 as of 08:04 ET on August 24. This temporary spike is nevertheless lower than Pi Coin’s previous peak and falls behind in the week’s performance also, with a loss of 5.75%. Early adopters of the token are questioning its direction with the token being unable to hold gains.

This comes as the 24-hour trading volume for the token has also been seen to increase by 16.59% to $113.75 million.

The Relative Strength Index (RSI) is sitting at 38 and is close to overselling levels, and the Moving Average Convergence Divergence (MACD) indicator is poised to experience a bearish crossover. Further, the Chaikin Money Flow (CMF) indicates that there is capital outflow and ongoing selling pressure.

Pi Coin has been trading in a tight range of $059 to $0.67, and a breakdown below such a channel can drive prices down towards $0.5192.

Unusually, the token is also set to face an influx of supply in the coming months. Having calculated a mean of 131 million tokens being unlocked every month over the next year, the supply may likely overpower demand unless urgent measures to stabilize the network are put in place.

Earlier this year, about 21.4 million Pi tokens were unlocked, which were valued at over $12 million.

Pi Network’s Early Hype Fades Amid Market Challenges

Pi Network is at a critical juncture following the initial excitement of mobile mining and referral-based growth. Bitget Wallet COO Alvin Kan explains that much of the original enthusiasm has been eroded by limited accessibility on exchanges, minimal liquidity, and a lack of material use case.

Early adopters were drawn to the possibility of profits and mining rewards, which appear to be diminishing.

Investor frustration is also evident in the relative performance of Pi compared to other large cryptocurrencies such as Bitcoin which rose during the general bull rally. Contrarily, Pi has diverged widely, with the currency falling c9lser to 15% in the past month alone.

Pi Coin Recovery Potential Amid Bearish Sentiment

Even with the bearish mood, there is still room for recovery in Pi. Market experts opine that a breakout above $0.8727, along with good volumes, could reverse the downtrend.

This is, however, dependent on the network providing actual utility and increased synergy in both the retail and decentralized finance (DeFi) markets. A utility-first strategy complemented with significant partnership and exchange listing extensions may help regain trust.

In the meantime, Pi is currently a high-risk token susceptible to any further dip unless quick measures to correct these problems are undertaken.