Pi Network Price Alert: 35% Crash Fear
The developing cryptocurrency area has Pi Network in a very disturbing time when the opinion of professionals is that the price will go down by 35% in 2024. A new market report has shown up a few very serious issues such as:...
The uncomfortable truth that Pi Network is at present is $0.60, a 21% fall in the one-month time span. It should be noted, however, that this is just the beginning. The situation will be much worse when more tokens are included in the supply of the month, that is, 105.69 million, in less than 19 days. Within the next period, the emergence of the first DEX and the increase of the block rewards the community will witness will be the reasons why the tokens will increase even more.
Why do you think so? Running a large number of tokens daily could cause a noticeable effect on the investment. The price seems to be jumping over the key resistance of $0.7860, considering the indicators it is using.
The article will be dedicated to the presenting points, which is technical analysis, expert predictions, and potential recovery scenarios that might have an impact on the future of Pi Network. Whether you are an experienced Pi Network investor or a potential entrant, being aware of these key developments for the year 2024 will be the determining factor of your success by allowing you to make appropriate and well-informed decisions.
Current Pi Network Price Analysis
On April 17th, the current date of the last trading day, Pi Network's price has undergone a considerable decrease which is an ominous sign for all market participants.
The present price stands at $0.60, constituting a sharp decrease of 21% from the highest point in the month.
The huge price drop has been attracting the attention of quite a few crypto analysts, particularly with respect to the market's general aspiration for peace.
Especially remarkable is that Pi Network's price trend is now in contradiction not only with its current low but also with the goals that were set in the early stages of the project.
According to historical evidence, the price of Pi Network in the months prior was stable, thereby, the price fall of the present time can be an exceptional scenario only.
On the part of cryptocurrencies, news about the pi coin price roller-coaster ride has not only been met with all-around praise from the community but also with wide criticism from most of the members of the community who remain skeptical about the sustainability of the current valuation.
At the time of writing the article, the underlying evidence was having a bearish bias to suggest continuation of selling and thus, further decline was likely.
💡 Takeaways: Reducing Pi Network's price from the previous level of $0.60 by 21% is an evident proof of significant market pressure and a trouble spot in the existing trading climate.
Token Supply Concerns Driving Bearish Sentiment
One of the most significant roadblocks that Pi Network has been facing in their growth efforts is based on the evolution of their token supply as the latter systematically pushes the price down.
The market is in a saturated state mainly because over 105 million more tokens are to be put out this month, which is a major driving factor for the unprecedented situation now.
But really, what does this mean for the average pi user?
Why does it have to be that awful? You know, just like a limited edition trading card that by some unfortunate luck gets millions of copies that make it no longer very worthwhile.
A difficult task for the pi core team is to be sure that this influx of supply is managed in a way that is not disturbing the attractiveness of the coin
Upcoming Token Unlocks and the CMDA Coin Performance
This becomes much more of a problem when we include the fact that there are a large amount of new pi tokens that are to be released in the market in the next month.
1.57 billion tokens are reported by some news; very soon a real earthquake will shake the market.
The result of this is that roughly 4 million tokens must be spawned every day, and this practically means that there is a constant selling pressure of the tokens.
To illustrate further, it is the same as constructing on a daily basis the houses needed for a whole new city in a hyper-extravagant real estate market.
The release of these tokens can be particularly painful in a low liquidity market.
Where the Pi Foundation Stands in A World Full of Tokens.
The Pi Foundation has accumulated 70 billion tokens, making it one of the largest players in the crypto market, whose potential value exceeds $40 billion.
One of the focal reasons for the increased attention to the network is the hoarding maneuvers conducted by the whales.
The actions taken by the whales have led to them also taking the blame for a possible market manipulation among other price considerations.
What the foundation in terms of the tokens is going to be the pivotal factor of the network's marketplace valuation.
💡 Key Takeaways:
Technical Analysis Indicates Bearish Mood
One of the Pi Network pricing evaluations based on its technical aspects has come up with some very gloomy signs and as these move on it is indicated that the price will continue to fall.
The present price trajectory has resulted in it breaking through many significant key supports that signal a bearish technical standpoint that investors are using.
Some investors who were hoping for a golden cross pattern that would confirm a trend reversal have been disappointed by the most recent price changes that have only strengthened the bearish trend.
It appears that the short-term volatility of pi's price is correlated with a significant increase of the selling pressure because a trial of recovery is received with much resistance...
New research is uncovering that a descending triangle pattern which has been transformed becomes a bearish trend on historic grounds.
Level of the Support and Key Resistance
The price has faced extreme resistance around the peak of $0.7860. It has led to the blockade of the Swedish resistance band behind a wild and clear-up trend as the price remains unchanged.
For instance, $0.6085 can be considered a critical support level and breaking this zone would mean that $0.40 will become the next level of support.
Where intraday levels correspond, the decline from the price floor to the expected target price is 35%.
Efforts to break resistance levels were made on countless occasions but on every occasion, they were in vain, thus marking bearish trend continuation.
Moving Average Analysis
Currently, the price remains below the 50-period moving average, which according to traditional analysis is a bearish signal for the declining price situation.
Price action being below the main moving averages means that the lack of buying power is obvious.
Technical indicators point out a solid connection between the most recent price movement and the bearish sentiment.
The MACD turning down of the moving average is a verification of the price going down, and hence, the force continues until the price turns up.
💡 Key Takeaways: Specifically, the identified technical analysis instruments like moving averages and support/resistance levels are giving a vivid illustration of a 35% price fall to $0.40 as the next major support level.
Supply-Demand Dynamics
Now that we are in a bear market, the biggest challenge that Pi Network is facing is the ability to keep the demand of the token at the same level as the growing token supply.
In the closed-loop system of the Pi Network ecosystem, one more layer of complexity adds up to the situation.
Considering this issue, imagine that it is like a bathtub - one where water (tokens) are added at an even rate: without drainage (demand) the result is spillover. (source).
Illiquidity of the proximity of the assets and the need to highlight the supply-demand gaps may have been the catalysts for this situation.
The liquidity issue at hand makes known to all that the volume of trade currently in the market is not enough to make the trade without causing an overflow of a large amount of tokens.
This instance could be a potential situation for the prices to have a downward trend.
Market Value Assessment
The future value of the pi coin is mostly going to come through its continued use and increase in popularity.
However, a recently available market data gave evidence of a substantial difference in the token value and its applicability to the core business.
Parameters such as the transaction fee structure and the pace of the development of the ecosystem would be the most significant if any valuation of the future is left.
At the current time, the market has valued the released tokens at $954 million which may be a bit of an overestimation.
According to a recent report, the valuation in question is likely to be seriously reconsidered, based on the current circumstances of the market.
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Key Points:
The Pi Network instance where the surplus supply of tokens is in contrast to the market demand and the simultaneous liquidity problem drags the token's valuation far below the trend line.
Price Recession-Scenarios and Causes
Despite the general negative attitude, the diversification of the factors influencing the range of the potential outcomes of the Network's Pi may result in the revival of the downtrend.
Network development programs need to make sure Pi's popularity both retains and grows, especially in those markets where crypto is warmly embraced.
Why would Pi Network turn the other direction?
The forthcoming are some of the potential triggers that could bring about a dramatic change in the current price of the token.
Introduction of practical examples of use cases and products that are practical and, in fact, superior to other products would create a demand for the product.
Imagine it to be a town you build. The more facilities and services you incorporate, the more attractive and useful the place becomes.
Listing the Token on Exchanges Effect
New pi trading not embedded yet which will have the chance to appear on famous exchanges is likely to give Pi Network a super large liquidity wave which will lead to a March effect of the market.
These Dino creatures of digital currency market can open Pi Network to quite a lot of potential investors.
These confirmed top additions are not only pieces of pockets of liquidity that are high but are also an identity of the price.
It is basically a proven fact that the previous stages have always had a huge number of buyers/ investors just like when a coin is listed on exchanges for the first time. Conversely, stage 1 exchange lists have always generated fireworks as there had been a significant number of participants in the market.
Improvements in technological progress, which result in the facilitation of the trading process, might alter the market dynamics quite significantly.
Ecosystem Development
A certain group of researchers has outlined the future use of pi cryptocurrency, especially the properties to be exploited in the Pi app ecosystem.
People's desire for things has always been the guiding force behind the extensive expansion of the customer base of the network.
Real-world utility building is one of the current requirements.
💡 Key Takeaways:Factually, being listed in the exchanges and building the ecosystem are two of the various ways that may eventually contribute to recovery in the price, but also, it is should be highlighted that dangers from the dark out there still exist.
Expert Price Predictions and Analysis
The crypto analyst who is the first among his colleagues to achieve the PhD level of knowledge in the field, in a recent analysis report he authored, advised for a very turtle-like approach in the next period.
Dr. Altcoin, a popular crypto analyst, is placing the supply dynamics as the most significant thing that can be worried about.
The analysis very much depends on the feeling of the rest of the market in terms of the dangers of over-tokenization. It revolves around the experience of tokenization and the market's ability to process tokens and the risks of over-tokenization.
The authorities have been urging the people not to invest in the PO group, on the contrary, as they are likely to get lower prices even to the extent that the trends are now in the market.
The data analytics follow the indications of the market's condition as the main reason behind the prices as well as some other factors, which are the main causes of prices. The analytics run on the basis of a combination of technical as well as sentiment indicators and then the state of the market is the primary price driver.
💡 Key Takeaways:Through the continuation of Dr Altcoin's and other experts' insights, it seems that the most probable scenario is the persistence of the downgoing price pressure for a while to come.
Conclusion
The Pi Network's possible price drop of 35% in 2024 may be even regarded as a challenge, as well as a driving force for the industry's actors. We have just proven that knowing a token's supply, technical, and market prospects has helped us to isolate the crucial developmental points that can influence its valuation in the next few months, thanks to the analysis of such aspects.
It is correct that the majority of the market's current emotions, which are of a bearish nature, are a result of the number of new coins that are in demand as well as the uncertainty of supply; but we need to remember the market is always changing. It is the capability of the Pi Network to strike the right balance between token supply and real can the Pi Network keep the upward trend? The real power of the token lies in its ability to remain a relevant part of the cryptocurrency world, develop an ecosystem and create alliances with various exchanges.
The technical indicators, support levels, and fundamental developments are what the Pi supporters or even the possible investors have to watch out for. In case you are someone who is always part of the Pi network or someone who has not joined the community yet, you will have to learn about the risks and sources of the issue, as well as keep in touch with the opportunities. With changes in the face of cryptocurrency, it will be the adaptability and the innovative ideas in the Pi Network that will pave the way for the future of the network and the price increase that might be possible.
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