“Demand is extremely down, and the on-chain usage of PI is poor,” one popular X user claimed.
“Uptober” has been more than generous (so far) to the cryptocurrency market, with Bitcoin (BTC) and Binance Coin (BNB) rising to new record price levels.
However, Pi Network’s PI has not joined the party, and its valuation keeps sinking.
The Bears Remain in Charge
Just a few hours ago, the price of the native token of Pi Network collapsed to a new all-time low of around $0.23 (per CoinGecko’s data). It later slightly rebounded to the current $0.24, representing a whopping 30% decline on a monthly scale and a 90% crash from the peak of $3 registered in February.
PI Price, Source: CoinGecko
PI’s market cap tumbled under $2 billion, making it the 74th-largest cryptocurrency. Recall that earlier this year, the capitalization exploded above $13 billion, meaning the asset was part of crypto’s top 20 club (at least for a while).
Some community members believe the free fall may continue in the short term. The X user with the moniker The Times of PiNetwork, for instance, predicted that the valuation could soon nosedive to $0.10.
For their part, pinetworkmembers argued that the Pi Network team has not done “anything good and reasonable for PI yet since the Open Mainnet launch, and they have no idea where to head this project anymore.”
“There is no decentralization, announcements have not gotten fulfilled and developed, 2 people in the network control everything. Demand is extremely down, and the on-chain usage of PI is poor. All of that are major red flags… So enjoy now in seeing PI got burned and never recover again,” they added.
Something for the Bulls
Despite PI’s negative performance as of late, some factors suggest a resurgence may be on the horizon. For starters, the upcoming token unlocks are significantly less substantial than those observed in previous months. Data shows that less than 120 million PI are scheduled for release in the next 30 days.
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PI Token Unlocks, Source: piscan.io
Next on the list is the declining amount of coins stored on crypto exchanges. Approximately 2.5 million PI have been transferred from centralized platforms to self-custody methods over the last 24 hours, resulting in reduced selling pressure.
Last but not least, we will touch upon the asset’s Relative Strength Index (RSI), which plummeted to 24. Readings below 30 signal that PI’s price has tumbled too rapidly in a short period of time and could be due for a rebound. On the other hand, anything above 70 is often interpreted as a precursor of a correction.
PI RSI, Source: TradingView
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