Pi Network has seen its token value fall sharply, with PI plummeting over 40% from a weekly high of $1.57 and dropping more than 71% from its all-time high of $2.99, reached in late February. Despite recent developments within the Pi ecosystem, the market reaction has been negative.
On May 14, the Pi Foundation unveiled a $100 million venture fund aimed at supporting startups across sectors like AI, gaming, fintech, and e-commerce. The initiative was designed to increase the real-world applications of the Pi network, but rather than boosting confidence, it led to a sell-off in the market. Traders had expected a major exchange listing to drive liquidity and price discovery, but without such a listing in sight, the news triggered a “sell the news” response.
Technical Analysis and Market Sentiment
The technical outlook for PI remains weak, with the token recently breaching the key $0.89 support level. Despite this, the relative strength index (RSI) at around 54 suggests neutral market momentum. While short-term moving averages indicate weakness, longer-term trends spanning 20 to 50 days show signs of underlying strength. Furthermore, a slightly bullish moving average convergence divergence (MACD) hints at potential recovery, though the overall trend remains uncertain.
Upcoming Catalysts: Could the Market Turn Around?
Several upcoming events could shift the market’s sentiment. Dr. Nicolas Kokkalis, the founder of Pi Network, is set to speak at Consensus 2025, a prominent blockchain conference. Speculation is growing that Pi Network might reveal a plan for network decentralization at the event, which could positively impact investor sentiment. Another major development to watch is the deactivation of the Pi Network’s core node, which would signal a move toward a more open and decentralized system.
Community expectations are also high regarding potential exchange listings. Strong wallet activity linked to Binance has fueled hopes that PI may soon be listed on a major platform. Although no formal announcement has been made, such a listing could significantly increase liquidity and boost the token’s price.
Token Supply and Selling Pressure
A persistent concern for Pi Network is its token supply. Over the next 12 months, approximately 1.47 billion PI tokens are scheduled to be unlocked. This surge in supply could exert downward pressure on the price unless there is substantial demand to match it. Many in the community are advocating for a token burn, which could help alleviate selling pressure and support the token’s value.
Outlook: Rebound or Further Decline?
If Pi Network can deliver on key updates during Consensus 2025, particularly around decentralization or major exchange listings, the price could recover above the $1 mark. However, if these expectations go unmet, PI could fall back toward $0.75, continuing its downward trend.
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