Pi Network (PI) Faces Steep Declines, Short-Term Rebounds, and Long-Term Prospects

• Pi Network dropped 26.31%, with RSI hitting an oversold level of 23.35, signaling strong bearish momentum.
• After the steep decline, Pi saw an 8.03% recovery, trading at $0.965763 with a 24-hour volume of $1.18 billion.
• Token unlocks continue to increase selling pressure, potentially driving Pi toward lower support levels like $0.3 or even $0.009.
• Long-term growth depends on ecosystem development, with stability likely only when Pi’s DApps gain traction.

The Pi Network token has experienced a turbulent phase, with a dramatic 26.31% decline pushing its price action well below critical support levels. Extreme oversold conditions are evident, as the Relative Strength Index (RSI) plummeted to 23.35, signaling strong negative momentum.

However, after this steep drop, Pi took a breather and staged a modest recovery, reflecting the token’s ongoing struggle between buyers and sellers. Currently, the Pi Network is priced at $0.965763, boasting a 24-hour trading volume of $1.18 billion, a market capitalization of $6.56 billion. Over the past 24 hours, Pi’s price has increased by 8.03%, showing signs of short-term resilience.

Source: CoinMarketcap

Pi Network’s Volatile Trajectory: What’s Next?

Pi Network’s price action follows a repetitive pattern: a brief pump, followed by another sharp drop. Market participants have observed this cycle, predicting potential movements where Pi could rally toward $1.2 or $1.3 before another retracement to $0.8 or $0.7. The cycle may continue, with price bounces to $1 or $0.9, only to be met with deeper corrections to $0.6 or even $0.5.

The broader trend suggests that Pi might eventually test lower support zones around $0.3 or $0.2, with extreme cases pointing toward a possible dip to $0.009, $0.008, or even $0.007. This scenario is primarily driven by increasing circulating supply as more Pi tokens unlock when users pass KYC and as lockup periods expire. This influx of tokens into the market results in heightened selling pressure, which is unlikely to be offset by sufficient buying demand.

The Psychology Behind Pi’s Sell-Off

Many long-term Pioneers, miners who have accumulated Pi over the past six years, are expected to take profits upon token unlocks, contributing to the continued price decline. Others, unfamiliar with Web3 fundamentals, may panic sell as they witness a downward spiral, further accelerating the bearish momentum.

However, this phase of market turbulence could also present an opportunity. As Pi’s price bottoms out, strategic investors may view it as a discounted entry point. Given that Pi operates as a Layer 1 blockchain, its long-term potential remains tied to ecosystem development. Once the price stabilizes and early sell-offs subside, Pi could enter a consolidation phase. The real breakout might only come when its decentralized applications (DApps) gain traction and the network matures.

For now, Pi Network remains a highly volatile asset, driven by market speculation and token unlocks. Short-term traders may capitalize on price swings, while long-term investors should monitor ecosystem developments before making significant moves. The true test for Pi will be its ability to transition from speculative hype to fundamental-driven growth through a robust DApp ecosystem and increasing adoption.

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