The Pi Network Coin price continued its recent downward trend today, May 26, reaching its lowest level since February. It has slumped by over 50% from its March high and has moved into oversold territory. 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 signal further downside, potentially reaching the psychological level of $0.100.
Pi Has Made Major Milestones, But Risks Remain
The ongoing Pi Network price crash is happening despite major milestones and future promises from the team. It recently completed its upgrade to v23, which introduced smart contracts and made it much faster than other chains.
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This launch makes it possible to deploy decentralized applications (dApps) on the network. One of the most anticipated is PiDex, which launched 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 Vibe coders to 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 major player in the human verification industry, which is currently dominated by the likes of Worldcoin and Humanity Protocol. Its goal is to launch a KYC-as-a-Service using its platform, which 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 trading volume under $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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