In the past day, the Pi Network (PI) experienced a notable decline of 12%, reflecting broader trends in the cryptocurrency market. The digital asset traded within a range of $1.25 to $1.59 before settling at around $1.39. Caution is prevalent among traders as they await key U.S. inflation data. Additionally, the recent token movements executed by the Pi Core Team are contributing further downward pressure, with an impending release of 282 million tokens in the next month raising supply concerns.
What Influences Current Market Trends?
The cryptocurrency landscape is responding cautiously to inflation forecasts. Many cryptocurrencies, including PI, have suffered from reduced investor confidence due to the pullback from riskier assets. Although daily trading volumes for Pi Network have seen an uptick, the declining price signifies persistent selling pressure.
What Are the Critical Support Levels for PI?
On March 7-8, the movement of 126 million tokens from the Pi Core Team’s wallet sparked market unease. However, PiScan, a blockchain monitoring service, clarified that these transfers were routine. With 23 million tokens expected to be released daily over the coming month, the potential for a supply-demand imbalance increases.
Key insights drawn from current market dynamics include:
- Decline in PI price reflects broader market uncertainty.
- Upcoming token releases could exacerbate supply issues.
- Critical support level identified at $1.05, with resistance expected between $2.40 and $2.60.
- Long-term potential as a payment method in real estate remains a positive factor.
While upcoming events, such as “Pi Day” in March, may provide a psychological boost, the overarching market volatility and increasing token supply pose significant challenges for the Pi Network in the short term.
