The Pi Network token is said to be trading at $0.6389, indicating a slight dip. The token is said to be struggling to stay above the key support level which is said to be at $0.63 and the resistance is said to be set at $0.71.
Pi Network’s price is currently facing resistance and potentially may face further decline due to the bearish signals that are being indicated by the charts.
At press time, the price of the token stands at $0.637 with an uptick of 0.22% in the last 24 hours as per CoinGecko.
Analysts Remain Optimistic
Even though there is a short-term bearish sentiment, some analysts remain cautiously optimistic about Pi Network’s medium to long-term potential. On-chain analyst Moon jeff, posted on X stating that the price of the Pi network token can soar as high as $5, as there might be developments with the mainnet rollout, exchange listing and clearer tokenomics.
According to Moon Jeff, in the last 2 days, around millions of Pi Network tokens have been withdrawn from various exchanges. This indicates that there are investors who are accumulating Pi Coins, which further signals an insider confidence and possibility of sudden market moves.
Reasons for Downfall of Pi Network and its Token Price
There are chances that the price of the token could drop below $0.51 due to several factors. The main reason here could be due to a large number of tokens being unlocked and entering the circulations. This unlocked tokens increases supply and puts downward pressure on the price.
Moreover, the lack of listing is always going to be one of the reasons that limits liquidity within the project. Ongoing uncertainty about the project’s development progress and tokenomics, combined with a negative market sentiment and potential mass sell-offs by early holders, could further decrease investor confidence and could possibly drive the price below its critical support level.
The market is said to be showing signs of consolidation, with Relative Strength Index (RSI) hovering around neutral levels and occasional buying interest indicated by bullish divergences on technical oscillators. If the buyers ever regain momentum and push the price above $0.71 resistance, there could be a significant breakout towards $0.75 or more than that.
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