Recent developments in the Pi Network have shifted the narrative from optimism to caution concerning its primary currency, Pi coin. Over the last 48 hours, the coin’s value has plummeted approximately 20%, currently hovering around $0.60. Experts warn that, without intervention, prices could further decrease by 35% to 50% in the near future.
Could Supply Dynamics Lead to Price Decline?
Dr. Altcoin, a notable figure in the cryptocurrency realm, identifies the unrestrained influx of new Pi coins as the chief factor behind the recent downturn. It is anticipated that April alone will see over 100 million coins released, potentially exceeding 1.5 billion throughout the year. If demand does not match this escalation in supply, the coin’s value may drop as low as $0.30.
Is a Shift in Strategy Necessary for Pi Coin?
Experts assert that for Pi coin to stabilize, significant adjustments from the Pi Core Team are essential. The coin currently struggles to maintain a solid price floor while failing to overcome critical resistance at $0.78, indicating a continued risk of decline.
Additionally, many analysts point out Pi coin’s lack of access to larger investor pools as another hurdle. The absence of listings on major platforms like Binance or Coinbase limits its market presence, hampering growth potential.
Following the current trends, here are crucial takeaways:
- The supply of Pi coin is increasing rapidly, which could depress prices.
- Without major exchange listings, attracting new buyers remains challenging.
- Potential strategies such as coin burning could help manage excess supply.
- Technical indicators reveal risks of both upward and downward movements in price.
Experts recommend implementing coin-burning mechanisms to mitigate excess supply. The Pi Core Team holds a significant reserve of over 70 billion coins, and reducing even a fraction could positively influence market prices. Implementing a burning model similar to Ethereum’s could stabilize the price volatility.
Currently, a falling wedge pattern suggests a possible price breakdown, with analysts noting a target of $0.402 if the trend continues. However, if Pi coin manages to rise above $0.78, it could once again aim for the $1 mark. Maintaining strong support at $0.61 is crucial for any potential rebound, according to analyst Moon Jeff.
