Pi Network price has plunged to a record low this month, continuing a strong downward trend that started after its highly-anticipated mainnet launch. This retreat, which has erased close to $19 billion in value, happened despite major developments by its developers. So, will the Pi Coin price rebound in the second half of the year?
Pi Network price dropped despite major developments
Pi Coin price has been in a strong sell-off in the year’s first half despite the team making some major milestones. One of the key developments was the Kraken listing that happened in March. This was a major thing because it made it available to millions of investors. It was also the first exchange that listed it after its mainnet launch.
Pi Network also continued its step-by-step network upgrades that sought to align it with the latest version of Stellar’s network. These upgrades have made it a more secure network with smart contract features, meaning that it will soon be possible to deploy decentralized applications (dApps) to the network.
Most recently, Pi Network launched three products on the Pi2Day event. They launched SoloHost, which allows Pi Desktop and nodes to support new local AI app and compute use cases. They also launched Pi Sign-In, which helps to connect those experiences across users, devices, and services.
Pi Network also launched PiVerify, which will extend its human verification capabilities to third parties. It aims at leveraging its KYC process by helping more companies conduct this verification, a move that will see it compete with World ID and Humanity Protocol. All these services will create more utility to Pi Coin.
Why Pi Coin dropped
There are four main reasons why Pi has plunged despite these developments. First, the retreat coincided with the ongoing crypto market weakness. Bitcoin and most altcoins have all retreated sharply this year.
Second, Pi Network’s Kraken listing largely backfired as it has not led to substantial demand. Instead, the exchange handles less than $50,000 of Pi tokens each day. In line with this, other mainstream exchanges like Bybit, Coinbase, and Binance have all refused to list it. This means that millions of traders and potential investors have no access to the coin.
Third, data shows that the overall demand for the token has dropped, a move that has coincided with robust unlocks. The network handled volume worth less than $15 million in the last 24 hours. It is set to unlock over 1.7 billion tokens in the next 12 months.
Further, there are signs that Pi Network’s investors capitulated and moved to other assets following months of underperformance. Many of them have also abandoned the crypto industry, which explains why most tokens have experienced ETF outflows. Investors have rotated to the stock market.
Pi Network price technical analysis
Pi Coin price chart | Source: TradingView
The daily chart shows that the value of Pi has slumped in the past few months and is now trading at its all-time low. As a result, it has slumped below all moving averages, a sign that bears are in control.
The Relative Strength Index (RSI) has slumped below the oversold level of 30. Also, the Stochastic Oscillator has moved below the oversold level, while the coin has slumped below the key support of $0.1282.
Therefore, Pi Coin price will likely continue falling as sellers target the key resistance at $0.10. The token will then bounce back later this year as investors rotate to assets that fell earlier this year.
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