Pi Network price has crashed in the past few weeks, erasing some of the gains it made in November this year. The token was trading at $0.2200 on Tuesday, down sharply from the September high of $0.2821. This article explores why the downtrend may continue in the coming days or weeks.
Pi Network Price Technicals Point to More Downside
The four-hour chart shows that the Pi Coin price has been in a strong bearish trend in the past few weeks, moving from a high of $0.2820 to the current $0.2200.
A closer look shows that the token has formed a head-and-shoulders pattern, a common bearish continuation sign in technical analysis. It is now along this pattern’s neckline.
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Pi Coin price has moved below the 50-period and 25-period Exponential Moving Averages (EMA), while the Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have continued moving downwards. It has moved to the Ultimate Support level of the Murrey Math Lines.
Therefore, the most likely scenario is where the Pi Coin price continues falling as sellers target the extreme oversold level at $0.2075, the extreme oversold level of the Murrey Math Lines. This price is about 10% below the current level.
Pi Network price chart | Source: TradingView
Pi Coin Facing Major Headwinds
The bearish Pi Network price forecast is happening at a time when it is facing some key headwinds.
First, the network will unlock over 150 million tokens this month and 1.21 billion in the next 12 months. The average monthly unlocks will be 18.7 million, which is equivalent to $4.14 million. More token unlocks will lead to a higher supply, which may dampen its price.
Second, Pi Network’s SocialChain recently received a lawsuit by an American disgruntled investor who accused it of being a scam. The suit argued that the network overpromised and underdelivered. For example, the plaintiff argued that the developers noted that Pi would be decentralized, while in fact they continue to control the nodes.
Additionally, Pi’s demand has slumped on Wall Street, with data showing that the 24-hour hour volume slumped by 13% to $14.3 million, a tiny amount for a cryptocurrency with a market capitalization of over $1.84 billion in assets under management. Most of this volume was on OKX and Bitget.
Pi Network price has other major headwinds, including the ongoing crypto market crash, which may continue after the Federal Reserve slashes interest rates on Wednesday. As we have written before, this cut may lead to more crypto downside as it has been priced in by market participants.
Pi Network is still a ghost chain with no ecosystem, making it hard to justify the current $1.84 billion market cap. While the developers have made some efforts to boost the ecosystem, including with the CiDi Games investment, the impact on the ecosystem growth is yet to be seen.
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