Pi Network Coin price has lost the momentum it had in March this year and moved into a consolidation phase in the past few weeks. It was trading at $0.1697 on Sunday, down by over 40% from its highest point in March.
Pi Network Coin Price Has Dropped as Investors Sell the News
To understand the main reasons why Pi Coin price is falling, you need to understand why it jumped in March. It soared in March as investors waited for Pi Day, when the developers have historically made major announcements.
Pi Coin also jumped as investors waited for the Kraken listing, which made it available to millions of people in the United States, where Kraken is one of the most popular exchanges.
Therefore, the coin is falling as investors sell these news. This situation is known as buying the rumor and selling the news. It happens when an asset rises ahead of a major event and then pulls back when it eventually happens.
A good example of this is in the stock market where a company soars ahead of a major event like corporate earnings and then retreats even when it releases strong numbers.
Pi Network price has also slumped after the Kraken listing backfired, with its volume remaining thin. Data shows that the volume on Kraken was just $26k in the last 24 hours, a tiny figure compared to the total volume of $12.7 million.
Pi Network’s demand has continued falling in the past few weeks, with its volume of $12.7 million being much lower than last month’s high of over $90 million. Indeed, the biggest Pi Coin whale has not brought tokens in the last 24 days. Before the crash, he was buying new tokens each day, bringing the cumulative total to holdings to over 401 million.
The waning demand is happening as the supply continues rising through the token unlocks and the ongoing second migration. Over 200 million Pi tokens will be unlocked this month.
Pi Coin Price Prediction: Technical Analysis
The daily timeframe chart shows that the Pi Coin price may continue falling in the near term as it has formed a head-and-shoulders pattern, which often leads to more downside over time.
It has already crashed below the 50-day and 100-day Exponential Moving Averages (EMA), while top oscillators are falling, a sign that the downtrend is gaining momentum.
Therefore, the token will likely continue falling, with the next key target being the all-time low of $0.1282, its lowest level in February this year. This target price is about 28% below the current level.
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