Despite a significant decline in Pi Network’s native token value over recent months, some community members are optimistic about a potential rebound replacing the current downward trend. One analyst has outlined a crucial condition that must be met for this recovery to materialize.
Potential for a 75% Price Increase
PI has mirrored the broader cryptocurrency market's downturn, experiencing a daily price drop of 5% to approximately $0.21, according to CoinGecko data. This current valuation represents a substantial 92% decrease from its all-time high of $3, reached in February. However, an X user known as Marzell has identified encouraging signals within the market.
In a recent post, Marzell expressed that PI "is holding firm above the $0.21 support, showing clear signs of accumulation." The analyst suggests that if PI can surpass the $0.26 mark, it could pave the way for an ascent to $0.37, a price level last seen around the end of September.
The X user PiNetwork DEX shares a similar outlook, claiming that PI has stabilized within the $0.20 to $0.22 range and may be heading towards $0.29.
It is important to acknowledge potential bearish factors that could impede such a rally. The upcoming multi-million token unlocks present a significant concern. With over 150 million PI tokens scheduled for release in the next 30 days, investors who have been holding their tokens may have the opportunity to sell, potentially increasing selling pressure.
Furthermore, a considerable amount of PI tokens remains stored on centralized cryptocurrency exchanges. Data indicates this figure is approximately 424 million, with over half of these tokens held on Gate.io.
Recent Pi Network Developments
The price decline of PI has occurred despite numerous positive developments surrounding the project. In late October, Pi Network Ventures, an entity focused on investing in startups and businesses across various industries within the ecosystem, made its inaugural investment in the artificial intelligence (AI) sector. This initiative involved a collaboration with OpenMind, a company developing an operating system designed to enable robots to "think, learn, and work together – like Android for robots."
Just a few days later, Pi Network achieved a significant milestone, surpassing 100 million downloads. For comparative context, industry leaders such as Coinbase and Crypto.com have approximately 50 million and 10 million downloads, respectively, indicating Pi Network's substantial user base growth.
Towards the end of the previous week, the Pi Network team announced a new update for the Pi Node, upgrading it to version 0.5.4. The primary objective of this update is to enhance accessibility, improve reliability, and address issues previously raised by the community of Pi Pioneers.