Pi Network price just crashed to a record low, continuing a downward trend that has been going on since its mainnet launch early last year. It plunged to a low of $0.1190, bringing its market capitalization to over $1.4 billion, a $18.6 billion lower than its all-time high of $20 billion. This article explores why the Pi Coin price continues its crash.
Pi Network price has crashed amid the ongoing crypto market weakness
The main reason why the Pi Network Coin has crashed this year is because of the ongoing weakness in the crypto industry that has affected Bitcoin and most altcoins. Data shows that the market capitalization of all tokens has dropped to $2.3 trillion this year.
The crypto market has happened because of the ongoing AI frenzy that is happening in the United States, Japan, and South Korea. Just this year, companies like Samsung, SK Hynix, and Micron have entered the $1 trillion market, and AMD will soon join them.
The AI boom is simply sulking money from other sectors as investors embrace the Fear of Missing Out (FOMO). Indeed, while the crypto market is falling, top AI coinslike Venice AI and Near Protocol have jumped to their record highs.
Pi Network has tried to position itself as an AI platform. For example, it recently launched an upgrade to its app developer kit, enabling vibe coders to migrate their apps to the platform and gain access to millions of users.
Pi is also working to enter the identity verification industry that Worldcoin and Humanity Protocol are in it. Their goal is to launch a KYC-as-a-Service solution that will offer services to third party companies.
Pi Coin’s demand has waned, while supply is rising
The token has also fallen because of the ongoing demand and supply dynamics. Data shows that the daily volume stood at less than $20 million today, June 4. This volume is a tiny one for a cryptocurrency valued at over $1.4 billion.
Pi Network’s volume has remained weak despite some major developments. It has already listed on Kraken, a top American crypto exchange. Most recently, OKX expanded its service and made it possible for Americans to buy it.
On the other hand, the amount of Pi tokens in circulation continues to grow this year because of its token unlocks. The network has unlocked millions of tokens in the past few months and data shows that more than 160 million coins will come online this month.
READ MORE: Pi Network price prediction ahead of the Kraken listing on March 13
Still, Pi Network has some potential catalysts in the coming months. For example, the network is continuing its upgrade that will make it faster and introduce smart contracts. At the same time, the recently launched CiDi games have become popular in the platform, a move that will lead to a higher utility.
Pi Coin price technical analysis
Pi Network price chart | Source: TradingView
The daily chart shows that the Pi Network price has crashed in the past few months. It tumbled to a record low of $0.1190, much lower than the March high of $0.2980.
The coin moved below the previous all-time low of $0.1305, its lowest point in February this year. It has moved below all moving averages and the Ichimoku cloud indicators.
Therefore, the path of the least resistance for the token is downwards, potentially to the key support level at $0.100.
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