The price of Pi Network has seen a significant decline today, December 14, as it fell to $0.085, its lowest value since November 4. This drop highlights a worrying trend for the Pi Coin (PI), as the demand for the token remains scarce.
Over the past month, Pi Coin had managed to outperform major cryptocurrencies such as Bitcoin and Ethereum. However, the recent sell-off has erased most of those gains. The ongoing releases of new tokens are contributing to the bearish sentiment, with over 190 million tokens set to be unlocked this month and a total of 1.2 billion tokens to be released over the next year.
Despite some recent advancements within the network, including the announcement of hackathon winners aimed at fostering ecosystem growth, interest among investors has not increased. Current data from CMC indicates a 24-hour trading volume that has plummeted to $9.5 million, a modest figure for a cryptocurrency boasting a market capitalization close to $2 billion.
On a more positive note, the rate of token unlocks is expected to decrease in the next six months. The ongoing token releases have coincided with a notable decline in investor interest. The Pi Network has also made strategic investments, such as in CiDi Games, which aims to enhance its presence in the gaming sector. Furthermore, the network is positioning itself to become influential in the artificial intelligence field, having invested in OpenMind and applying AI technologies to improve processes like KYC migration.
In terms of technical analysis, the daily chart reveals a concerning double-top pattern forming at $0.2937, nearing a critical neckline at $0.205. This pattern suggests potential further declines, with projections indicating a possible drop to approximately $0.1357. Compounding the bearish outlook, Pi Coin remains below all moving averages, and the Relative Strength Index is trending downwards, reinforcing the negative sentiment.
As it stands, Pi Network faces a challenging road ahead, with the market dynamics and investor sentiment playing crucial roles in determining its future trajectory.
