Pi Coin price retreated for eight consecutive days, making it one of the top laggards in the crypto market. It dropped to $0.2055, its lowest level since January 2nd. This retreat may accelerate soon, as Pi Network has formed an alarming pattern of worsening fundamentals.
Pi Coin Price Technicals Hint at an Eventual Crash
The daily timeframe chart shows that the Pi Coin price has formed several highly bearish chart patterns. First, it has formed a double-top pattern at $0.2820 and a neckline at $0.2028, its lowest level on November 4 last year.
Second, the token has formed a rising wedge pattern, a pattern composed of two ascending, converging trendlines. The two lines are now nearing their convergence, increasing the odds of a major bearish breakout.
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Third, the Relative Strength Index (RSI) has fallen below the neutral 50 level and is pointing downward. It has moved below the Supertrend and all moving averages.
Therefore, the most likely Pi Network price forecast is bearish, with the next target at $0.1530, down 25% from the current level. This price coincides with its all-time low.
Pi Network Fundamentals Have Deteriorated
There are signs that Pi Network’s fundamentals have continued to deteriorate this year. For one, data shows that its daily trading volume has slumped to below $10 million, a small amount for one of the most popular cryptocurrencies.
The tumbling volume is a sign that investors have capitulated. It also does not inspire confidence for the other mainstream crypto exchanges like Coinbase and Upbit to list it.
Meanwhile, the Valor Pi Fund, which trades in Sweden, has over SEK 25,200 or $2,700 in assets under management (AUM). This means that the fund has largely flopped, raising the odds that it will delisted.
Pi Network’s ecosystem continues to struggle, with no mainstream application. While there are over 100 dApps, none of them has become popular among users. One reason for this is that many pioneers who used to be highly active in the network have capitulated as the token has crashed.
Another reason is that the applications are only available on the Pi browser. This creates an additional layer that many people would rather skip.
Pi Network’s team has not helped the situation. It has not shared any roadmap on its future plans, including on decentralization and full open mainnet launch. Also, the developers have not announced ways to improve its tokenomics, including how to burn tokens to offset the daily unlocks.
Additionally, there is uncertainty on whether the ongoing developments like Protocol v23 and DEX launch will have a substantial impact on the ecosystem.
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