Pi Network price dropped for three consecutive days, reaching its lowest level since February 26. It has now plunged by nearly 50% from its highest point in March this year, and this trend may continue in the near future.
Pi Network price technicals point to more downside
The daily chart shows that the value of Pi soared to a high of $0.2975 in March as investors cheered the Kraken listing and the Pi Day event. These gains were short-lived as the coin started its strong downward trend as investors sold the news.
Data shows that Kraken has not led to a major surge in its US demand as analysts were expecting. Its volume in the last 24 hours stood at $57k, much lower than the 24-hour volume of $17 million.
Technicals suggest that the Pi Network price may continue falling in the near term. It has dropped below the important support level at $0.1637, its lowest point in April this year.
The coin has moved below all moving averages, a sign that bears remain in control. At the same time, the Relative Strength Index (RSI) has continued falling and is now nearing the oversold level of 30. The Average Directional Index (ADX) has tilted upwards to 16, a sign that the sell-off is gaining momentum.
Therefore, the most likely scenario is where the Pi Network price continues falling, potentially to the key support level at $0.1300, its lowest level this year. Such a move would be a 18% decline below the current level.
Pi Network price chart | Source: TradingView
Pi Network is making some solid progress
Fundamentals suggest that Pi Network is making some important progress this year. One of the main updates came out late last week when the team launched a major update to the App Studio.
The developers noted that it will now be possible for vibe coders to take advantage of its large community of users. In this, they will build their applications and convert them to be Pi App Studio compatible.
As a result, these developers will tap into a community of over 60 million people who will engage with the apps. In theory, this should be a good thing for Pi and its ecosystem.
However, it is unclear whether the Pi community has over 60 million users. Recent data showed that less than 20 million people have migrated to the mainnet and many of these have likely exited the ecosystem as the token plunged.
Pi Network has also made its upgrade to v23, a move that has introduced smart contracts to the platform. It will now become possible for developers to build their decentralized applications (dAPPS) in key areas like decentralized finance (DeFi) and real-world asset (RWA) tokenization.
The challenge, however, is that the industry has become highly competitive, with Ethereum, Solana, and BNB having the biggest market share. Many chains that attempted to become big names in the smart contract industry have failed. This includes popular chains like IOTA and Cardano.
There are also concerns that demand for Pi has slumped in the past few months. Data shows that its 24-hour volume stood at about $14 million, a tiny amount for a coin with a market capitalization of over $1.7 billion.
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