Pi Network Coin price continued its recent downward trend today, May 26, reaching its lowest level since February this year. It has slumped by over 50% from its highest point in March and moved to the oversold level. This article explores what to expect in the near term.
Pi Network Coin Price Has Moved to the Oversold Zone
The daily chart shows that the value of Pi Network has crashed in the past few months. This retreat started in March after it received a listing by Kraken, a major American crypto exchange. This listing was a major milestone as it made it available to American traders and investors.
The token has continued to make a series of lower lows in the past few months. It recently dropped below the important support level of $0.1645, its lowest level on April 14 this year. The coin also sits below the 50-day moving average, which has acted as a crucial resistance line.
At the same time, the Relative Strength Index (RSI) has moved to the oversold zone of 30 for the first time since February this year. It has moved from a peak of 67 in April this year.
Therefore, with demand falling, there is a risk that the coin will drop to the all-time low of $0.1295, its lowest level on record. Such a move will be a 18% decline from the current level. A drop below that level will point to more downside, potentially to the psychological level of $0.100.
Pi Network Coin price chart | Source: TradingView
Pi Has Made Major Milestones, But Risks Remain
The ongoing Pi Network crash is happening despite some major milestones and future promises by the team. It recently completed its upgrade to v23, a move that has introduced smart contracts and made it much faster than other chains.
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This launch means that it will be possible to launch decentralized applications (dApps) on the network. One of the most anticipated ones is PiDex, which moved into its testnet last year.
The challenge, however, is that it is quite hard for layer-1 projects to succeed. For example, top layer-1 networks like IOTA, Ziliqa, Hedera, and Cardano have struggled to attract a critical mass of users.
Pi Network is also seeking to establish itself as a leading chain in the artificial intelligence (AI) scene. It has already upgraded its Pi App Studio to enable that vibe coders can bring their apps to the network. By so doing, these developers will gain access to millions of users globally.
Pi is also seeking to become a large player in the human verification industry that is currently dominated by the likes of Worldcoin and Humanity Protocol. Its goal is to launch a KYC-as-a-Service, using its platform that has verified millions of users. Again, the challenge will be on how to compete with the top names like World.
The coin is also seeing weak demand, with its 24-hour volume being less than $8 million. This volume gives it a volume-to-market-cap ratio of 0.49%, which is tiny. For example, Worldcoin has a multiple of 34.6%, while BNB had 1.65%.
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