Pi Network price has dropped by 43% from its all-time high of $2.98, which was registered barely one week ago. Pi Coin was also among the few altcoins that failed to register strong gains over the weekend after US President Donald Trump announced a crypto strategic reserve. As Pi Network tumbles, let us explore three main factors fuelling the downtrend.
Top 3 Reasons Why Pi Network Price is Crashing Today
Pi Network token today trades at $1.67 after a 7% drop in 24 hours. Pi Coin reached an all-time high of $2.98 last week, but it has since dropped by 43%. Below are the top 3 reasons why the Pi Network price is crashing.
Delayed Binance Listing
One of the factors that have been driving gains for Pi Network price since its launch is the hype around exchange listings. However, the token’s listing on Binance is taking longer than expected, causing buyer exhaustion.
Binance conducted a community vote between February 17 and February 27 asking its users to vote on whether to list Pi Coin. The vote closed with 86% of Binance users being in favor of the listing. However, nearly one week since the vote closed, the Pi Network token has yet to debut trading on Binance.
If Binance fails to list Pi Coin, it could dim investor confidence and fuel more declines for the token.
Whales Are Likely Selling Pi Coin Amid Slow Adoption
Pi Network may also be crashing because of whale manipulation. This is according to analyst Dr Picoin who stated that the current volatility is caused by a pump-and-dump scheme by whales. In his analysis, Dr Picoin noted that Pi Network price would likely stabilize if decentralized applications (dApps) were launched on Open Network.
“Once a majority of Pi DApps are deployed, they will significantly reduce pump-and-dump cycles by increasing utility-based demand and stabilizing liquidity,” he stated.
Recently, Florida-based real estate company Zito Realty announced that it would accept Pi Coin as a means of payment for real estate transactions. If this continues, it could detach PiCoin from the meme coin market and drive a strong uptrend.
Pi Network Price Succumbs to Rising Bearish Pressure
The Pi Network token hourly chart shows that the bearish momentum depicted in the descending parallel channel is gaining strength. The RSI is below 50, indicating that bears are in control. At the same time, the RSI has been making lower lows, meaning that selling pressure is increasing.
The Awesome Oscillator also shows rising bearish momentum, which may fuel the downtrend in Pi Network price in the near term. The RSI and the AO show that sellers have overpowered buyers, causing the Pi Network token to drop in value.
If these bearish trends continue, PI Coin may breach support at $1.49. Dropping below this level will cause Pi Network price to breach the lower trendline and accelerate the downtrend. Failure to defend this support will push Pi Coin below $1 to $0.70.
Bottom Line
The Pi Network token is dropping because of several factors. These include the delayed listing of Pi Coin on the Binance exchange. Whales are also likely selling Pi Coin, which is driving the bearish momentum. As bears gain control, Pi Network price could drop below $1 to find support at $0.70
The post Why Is Pi Network Price Crashing? appeared first on CoinGape.
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