Pi Network's native cryptocurrency, PI, continues its downward trajectory, breaking below a key support level of $0.89

The token has experienced a sharp decline, falling more than 40% from its weekly high of $1.57 and sitting 71% below its all-time high of $2.99

Pi Network's native cryptocurrency, PI, broke through a crucial support level and traded at approximately $0.86 by 16 May.

The token has seen a sharp decrease, falling more than 40% from its weekly high of $1.57 and sitting 71% below its all-time high of $2.99 reached in February.

This price drop comes despite what appeared to be positive news from the project. On 14 May, the Pi Foundation announced a $100 million venture fund to support startups in various sectors including AI, gaming, fintech, and e-commerce.

A Mainnet migration roadmap based on the network's priorities is now available.

The initiative aims to boost real-world applications within the Pi ecosystem. However, the market responded negatively to this announcement.

Many traders had expected a major exchange listing announcement instead, which would have improved liquidity and price discovery for the token.

The technical indicators present a mixed picture. The relative strength index stands at around 54, suggesting neutral momentum in the short term.

While short-term moving averages show weakness, longer-term trends spanning 20 to 50 days display some underlying strength. The moving average convergence divergence indicator shows early signs of recovery.

Potential Catalysts Ahead

Several upcoming events could potentially shift PI's price direction. Dr. Nicolas Kokkalis, the project's founder, is scheduled to speak at Consensus 2025, a major blockchain conference.

Rumors suggest the team may use this opportunity to showcase a network decentralization plan, which could address some investor concerns.

Another significant update on the horizon is the deactivation of Pi Network's core node, indicating a possible move toward a more open system.

Exchange listing speculation continues to circulate. Strong community support and wallet activity linked to Binance have fueled expectations that PI might soon be listed on a major exchange platform.

Though no formal announcement has been made, such a listing could substantially improve liquidity for the token.

Token supply issues remain a concern for investors. An estimated 1.47 billion PI tokens are scheduled to be unlocked over the next 12 months.

This potential influx of supply could put downward pressure on the market without corresponding demand growth. Some users have called for a token burn to help alleviate selling pressure.

Centralization Concerns Mount

Adding to investor worries are allegations about the project's centralized structure. According to analyst Szymanski, 89% of Pi's token supply is controlled by the core team.

Out of the 100 billion PI tokens that will eventually exist, 89 billion reportedly remain in the hands of the Pi Core Team. Only 7.1 billion are currently in circulation.

This level of centralization has drawn comparisons to the Terra Luna collapse, with critics warning that a large sell-off by the team could trigger a similar crash.

Other red flags identified by critics include the pre-minted nature of all PI tokens, the absence of independent audits, and the lack of listings on major cryptocurrency exchanges.

If Pi Network can address these concerns and deliver on key updates at the upcoming Consensus event, the price might recover above the $1 mark.

However, failure to meet market expectations could push the price toward the $0.75 level or lower.

The project stands at a critical juncture as it faces growing scrutiny over its centralized structure while working to expand its ecosystem through the new venture fund initiative.