Pi Network price remained in a tight range today, January 12, continuing a trend that has been going on since the second week of December.
Summary
- Pi Network price remained in a tight range on Monday.
- The daily volume dropped to just $6 million.
- It has formed a rising wedge pattern, pointing to more downside.
Pi Coin (PI) token was trading at $0.2075, much lower than the all-time high of ~$3, which it reached shortly after the mainnet launch.
The ongoing consolidation is largely because of the waning demand among investors. Data compiled by CoinMarketCap shows that its volume in the last 24 hours was just $6 million, a tiny amount for a cryptocurrency with a market capitalization of over $1.7 billion. Its volume was much lower than other smaller cryptocurrencies like Render, Cosmos, and Official Trump.
Pi Network’s volume waned even after the developers launched new tools to make it faster for its developers to incorporate payments to their applications. The new tools include the Pi SDK and backend APIs to ensure that they can integrate these payments within minutes.
Pi’s team is also working on the decentralized exchange, automated market, and token creation tools, which will be launched later this year. They hope that these tools will help to boost Pi’s utility over time.
There are a few reasons why Pi Network’s volume has dropped in the past few months. First, unlike most tokens, Pi is not listed in most mainstream exchanges like Coinbase and Binance.
Second, there are concerns about the daily token unlocks, which are increasing its supply. The network will unlock over 1.2 billion tokens this year.
Further, Pi is a highly centralized network in the crypto industry, with the obscure Pi Foundation holding billions of tokens.
Pi Network price is at risk of a deeper dive
Pi Coin price chart | Source: crypto.newsThe daily chart shows that the Pi Coin has formed highly bearish chart patterns, pointing to more downside. It is in the process of forming a rising wedge pattern, which is made up of two ascending and converging trendlines. These two lines are nearing their convergence, which will lead to a bearish breakout.
The coin has also formed a bearish pennant pattern, a common continuation sign. It remains below the 50-day Exponential Moving Average and the Supertrend indicator.
Therefore, the most likely Pi forecast is bearish, with the next key target being at $0.1918, its lowest level in December. A drop below that target will raise odds of it reaching its all-time low.
Source: https://crypto.news/pi-network-price-alarming-pattern-daily-volume-tumbles/
