Pi Network Faces Challenges Amid Crypto Market Recovery
Pi Network (PI) is lagging behind in the recent crypto market rebound, with a 10% drop over the past week. Currently trading at $0.5832, the token is about 80% below its all-time high of $2.99.
Despite the price dip, trading volume has surged by nearly 35% in the last day, reaching $128 million. This indicates renewed interest from traders, which could signal a potential price movement.
The 50-day simple moving average (SMA) at $0.82 remains a significant hurdle. PI is still below this line, and other short-term moving averages also show a bearish trend. The relative strength index (RSI) is at 38.7, suggesting the token is close to being oversold.
- Bollinger Bands indicate PI is near the lower band, hinting at possible oversold conditions.
- A bounce could push the price toward $0.75 or higher.
- Breaking above the 50-day SMA with strong volume could lead to $0.85–$0.90.
Token dilution poses a major risk.In April, 21.4 million new tokens were unlocked, and an estimated 131 million will be unlocked monthly for the next year.this could impact the price unless demand increases or the team intervenes.
A token burn could help. The Pi Foundation owns over 70 billion PI tokens, valued at more than $40 billion. Burning some could support the price. Listing on major exchanges like Coinbase or Binance could also unlock new demand.
For now, Pi Network’s ability to turn the 50-day SMA into support may be the first sign of returning strength.
