Pi Network, the mobile-first cryptocurrency mining project, is facing setbacks even as the global crypto market begins to rebound. Over the past week, the Pi token has experienced a downward trend, suffering a loss of about 10 percent of its value.
The token is currently trading around $0.5832, which is significantly below its peak of $2.99. It’s worth noting that recent trading activity suggests a potential shift in investor attention, with a nearly 35 percent surge in trading volume over the last 24 hours.
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The battle at the 50-day moving average
Pi Network faces a key resistance barrier at its 50-day simple moving average, currently near $0.82. The token continues to trade below this critical level, with additional short-term indicators such as the 10-day and 20-day moving averages reinforcing the ongoing downward trend.
The Relative Strength Index (RSI) sits at 38.7, suggesting the token is approaching oversold territory but hasn’t quite reached it. However, some indicators, such as the Moving Average Convergence Divergence (MACD), offer little hope, hinting at potential buying interest.
In April, 21.4 million new tokens were introduced, valued at about $12.3 million. Projections indicate that 131 million tokens will be unlocked monthly for the next year. Without a corresponding increase in demand or proactive measures from the Pi team, this gradual increase in supply could exert downward pressure on the price.
A potential remedy to alleviate investor concerns and bolster the price could involve listing the token on a major cryptocurrency exchange such as Coinbase or Binance.
Read also: Pi Network expands Ad network access to all mainnet-listed apps
About Pi Network’s crypto market
Currently, Pi Network exists in a phase where its mainnet is yet to launch fully, resulting in its absence from major cryptocurrency exchanges for direct trading.
Instead, an “I Owe You” (IOU) market has emerged on some platforms, representing contracts for Pi coins upon mainnet launch. This IOU market exhibits major price volatility, currently between $0.57 and $0.65.
The reported market capitalization is estimated between $4.01 and $4.11 billion, and remains based on IOUs, making it somewhat speculative.
Looking ahead, the anticipated launch of the open mainnet stands as a critical milestone that will shape Pi’s future market direction.
Meanwhile, user completion of Know Your Customer (KYC) verification remains essential for migrating mined tokens to the mainnet.