Here’s Why Pi Network Price is Falling: Can It Rebound to $0.4?

The Pi Network price was one of the top laggards today, losing more than 11% during writing and falling to a new all-time low.

This has sparked concerns among market participants, with many evaluating the potential reason behind the current dip in Pi Coin’s value.

However, it appears that despite the dip, many Pi Community enthusiasts remain optimistic about the future potential of the asset.

For now, the market experts are primarily focused on the upcoming token unlocks and other looming uncertainties surrounding the Pi Network.

Why is Pi Network Price Falling Today?

Pi Network price has recorded a slump of over 5% today and slipped to $0.3528, recovering from an all-time low of $0.341 recorded in the last 24 hours.

Notably, despite the plunge, the asset’s one-day trading volume rocketed 86% to $168 million, indicating a significant selling activity in the market.

The derivatives data also paints a gloomy picture. According to Coinalyze data, Pi Coin Open Interest fell to 8% from yesterday to $10.4 million.

However, the relative strength index (RSI) of the asset appears to have provided some relief to traders.

For context, the Pi Coin’s RSI stood at 33, nearing an oversold condition. In other words, it indicates that the crypto might attract more traders to enter the market at a discounted price.

Meanwhile, amid this, experts have pointed to several potential reasons behind this decline.

For context, in a recent X post, Pi community enthusiast with a pseudonymous name “The Times of PiNetwork” has highlighted the key factors that may be contributing to the ongoing decline in PI’s value.

Whale Selloff & Binance Listing Delay

According to the analyst, one of the primary reasons behind the recent selloff could be the large Whale or institutional selling.

He noted that the sudden large sell-off has likely triggered panic in the market, leading to a cascade of stop-loss orders and liquidations.

This sell-off, which he believes has been caused by whales or institutional investors, rather than retail traders. In addition, the sentiment was further dampened by the soaring trading volume and dropping value.

In addition, he has highlighted the lack of Binance Listing as another potential factor. An overwhelming 87% community voted in favor of listing Pi Coin on Binance.

However the exchange has yet to make an official announcement. This delay has caused frustration and panic selling among investors.

Pi Network Unlocks & Centralization Woes

Another factor that The Times of PiNetwork has highlighted is the looming token unlocks. According to PiScan data, 160.35 million Pi tokens are scheduled to be unlocked over the next 30 days.

They’re valued at $56.78 million at the current price. The largest unlock, scheduled for August 8 and August 16, will release 8.3 million tokens on each day.

On the other hand, the Pi Community also criticizes the centralized nature of the Pi ecosystem. The concerns over the concentration of Pi coins among a small group of users have raised concerns about possible price manipulation.

Besides, the expert said that the Pi Network ecosystem currently lacks robust decentralized applications (dApps) and real-world use cases, limiting demand and driving prices down.

Echoing a similar sentiment, expert Kim H Wong believes that Pi Network faces two major problems, which are the lack of available dApps for bartering and the limited availability of Pi coins due to locked wallets.

Wong suggests that opening up available apps and conducting a second Pi migration could help resolve these issues and allow the network to thrive.

However, despite the current Pi Network price drop, some experts remain optimistic about Pi Network’s future prospects.

For context, a listing on Binance, large-scale token burn, or improvements in the Pi ecosystem could help stabilize the price and drive growth.

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