Pi Network price is stuck in a bear market this month, and odds are high that it will continue falling as demand fades and token unlocking continues. The token dropped to the current $0.2027 on Tuesday, down by 30% from its November highs.
Pi Network Price at Risk as Demand Dries and Supply Rises
The Pi Coin price has dived by over 90% from its highest level this year, and this freefall may continue in the near term as headwinds continue rising.
One of the main headwinds is that Pi’s demand has largely dried during the ongoing crypto market crash. Data compiled by CoinMarketCap shows that the 24-hour volume stood at just $8.6 million, making it one of the least traded coins in the crypto industry.
An $8.6 million daily volume is also a tiny one for a cryptocurrency with a market capitalization of over $1.69 billion. In contrast, the recently launched Midnight token had a volume of over $200 million.
One reason for the decline in volume is that Pi is not listed in the biggest crypto exchanges like Binance, Upbit, and Coinbase. Some of these companies are concerned that Pi may be a scam, while others believe that it is highly centralized.
The falling volume is notable as the network continues to boost the supply through the daily unlocks. Data shows that the network unlocked over 190 million tokens in December. It will then unlock over 136 million tokens in January and 1.24 billion tokens worth $252 million in the next 12 months.
Data shows that there are 8.3 billion tokens in circulation and a maximum supply of 100 billion tokens. This means that over 91.7 billion tokens will be unlocked eventually.
Pi Network price has more headwinds that will impact its performance. For example, some analysts believe that it has become a ghost chain with no applications in the ecosystem.
Pi Network Price Technical Analysis
The eight-hour chart shows that the Pi token price has dropped sharply from the November high of $0.2823 to the current $0.2028.
Pi Network has formed a double-top pattern at $0.2823 and a neckline at $0.2021, its lowest level on November 4 this year.
The token has moved below the 50-period Exponential Moving Average (EMA), while the MACD is stuck at the neutral point at zero.
Therefore, the token will likely have a strong bearish breakout in the coming days, with the next key target level to watch being at $0.1515, its lowest level in October this year.
The bearish Pi Coin price prediction will become invalid if the token rises about the important resistance level at $0.2150, its highest point on December 20th.
Source: https://coingape.com/markets/pi-network-price-prediction-as-demand-slips-ahead-of-the-136m-unlock/