Pi Network price has stalled and is missing the ongoing crypto market boom, popularly known as Uptober, continues. The token was trading at $0.26 on Friday, inside a range it has been at in the past few days. It has plunged by over 90% from its all-time high.
Pi Coin price has wavered on the same week that Bitcoin jumped close to a record high and the Crypto Fear and Greed Index moved to the green zone. The market capitalization of all cryptocurrencies jumped to over $4.2 trillion.
Importantly, the token remained under pressure on the same week that Chengdiao Fan, its co-founder, talked at the TOKEN2049 event. This was a notable development as it was her first time delivering a speech or take part in a panel discussion.
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Also, Pi Network launched a testnet for decentralized exchanges (DEX) and automated market maker features in its testnet. The new feature will make it possible for developers to build decentralized applications in the DeFi space.
There are three main reasons why the Pi Network price wavered despite these developments. First, the coin is still seeing weak demand from investors as evidenced by the daily volume. Its daily volume was just $33 million, a tiny amount for a coin with a market capitalization of over $2 billion.
Second, the weak demand has coincided with the ongoing token unlocks. It is unlocking over 125 million coins this month and over 1.2 billion in the next 12 months. More supply and lower demand will always affect an asset’s price.
Third, a mysterious whale who has been accumulating the coin has stopped his purchases. The lack of his substantial buying has had an impact on the demand.
Pi Network Price Technical Analysis
Technical analysis suggests that the Pi Coin price is about to fall further as it formed a bearish flag pattern on the four-hour chart. This pattern is made up of a vertical line, which, in this case, happened on September 22. It also has a parallel channel, which often leads to a bearish breakout.
If this pattern happens, the coin will likely drop to the extreme oversold level at $0.2197, which is about 17% below the current level.
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