Why Pi Network price crash sparks rug pull fears

The Pi Network plunges over 90% from its peak, wiping out billions from its market cap. Many community members are speculating on whether this means a rug pull is on the horizon.

According to data from crypto.news, the token has continued to fall lower from its initial peak in February. In just eight months, the token’s value has plummeted by 90%. From its all-time high at $2.99, it is now trading at less than $0.30.

Within just six months, the token’s market cap has lost more than $18 billion. The continued decline of the token has led many Pi Network (PI) token holders to believe that the team could very well be planning to rug-pull the token.

“Pi crashed over 90% from its highest position that’s basically a rug pull. Why should I or other Pi Network investors be happy about that?” said one user on X.

According to the trader, many in the Pi community continue to hold onto the belief that 1 Pi is valued at $314,159, a figure long promoted as the “Global Consensus Value.” However, growing skepticism within the community suggests that this valuation is largely false.

At the center of the controversy is the Pi Core Team, which reportedly controls around 90 billion tokens. The large concentration of tokens held by the core team is why many traders argue that they have unfair influence over the token’s price and market behavior.

Due to this, analysts suspect these could be linked to insider selling, potentially contributing to the steep decline in Pi’s value.

However, some supporters of the project maintain that Pi never raised external capital, which means it technically cannot be labeled a “rug pull.” Nevertheless, the heavy centralization of tokens within the Pi Foundation has raised fears of possible market manipulation.

Pi Network price analysis

As of late, the Pi Network price remains under heavy pressure, trading at around $0.263 at the time of writing. The token suffered a sharp decline in late September, plummeting from around the $0.33–$0.34 range to below $0.26. Since then, Pi has been consolidating sideways with minimal volatility, suggesting that market participants are uncertain about the token’s next direction.

The 30-period moving average sits closely above the current price at $0.2623, acting as a short-term resistance level.

Despite the stabilization, momentum indicators reveal only modest recovery potential. The Relative Strength Index currently reads 62.00, showing that buying pressure has slightly increased but is still within neutral territory. A sustained move above 70 could signal a short-term overbought condition, while a drop below 50 might confirm renewed selling pressure.

For now, RSI levels indicate that Pi is in the middle of experiencing mild bullish momentum following prolonged consolidation.

So far, the price structure shows limited upward traction as long as Pi remains below the $0.28 resistance zone. A breakout above this level could open the door for a rebound toward $0.30, but without strong volume support, such a move may be unsustainable.

On the other hand, if it fails to maintain support near $0.26 it could fall even lower to around $0.24, especially if broader market sentiment weakens or additional selling from major holders occurs.