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Pi Network price extended its decline this week as the token moved closer to its record low. PI traded around $0.082 on Sept. 17 after falling to roughly $0.081 during the previous session.
The decline came during broader crypto market weakness following the failed CLARITY Act cloture vote. At the same time, Pi Network is working through its Protocol 27 upgrade, which is intended to expand smart-contract authentication capabilities.
Pi Network Price Breaks Below Short-Term Support
The daily chart explains why the Pi token made a strong bearish breakout this week. As the chart shows, it made a rising wedge pattern, which is comprised of two ascending and converging trendlines. The breakdown happened when the two lines neared their confluence level.
The token has now moved below the Major S/R Pivot Point of the Murrey Math Lines tool. It also remains below the 50-day Exponential Moving Average (EMA), a sign that bears have prevailed.
The Relative Strength Index (RSI) has continued its downward trend and crossed the neutral level of 50. Also, the Average Directional Index (ADX) has jumped, a sign that the downward trend is gaining momentum.
Therefore, the chart suggests that the token has more downside to go. If this happens, the next level to watch will be at $0.0715, its all-time low. A drop below that level will point to more downside, potentially to the ultimate support of the Murrey Math Lines at $0.048.
Pi Network Token Dropped as the CLARITY Act Stalled
The ongoing Pi crash is happening because of the broader crypto market weakness. Bitcoin, the biggest coin in the industry, slipped to $75,000 from this month’s high of over $80,000. The market capitalization of all tokens dropped by over 1.12% to $2.58 trillion.
This retreat happened as investors reacted to the failure of the US senate to pass the CLARITY Act. Many Democrats voted against the procedural step, noting that the concessions that Republicans made did not go further enough. Their concern is that they left some loopholes that will allow politicians like President Donald Trump to issue their tokens.
CLARITY Act would have been the biggest crypto-focused bill that the US has passed after GENIUS, which focused on stablecoins. Consequently, the odds of the CLARITY Act becoming law remains substantially low.
Pi Network Token Plunged Despite the Protocol 27 Upgrade
The token also dropped as investors assessed the impact of the Protocol 27 upgrade. This is the final upgrade in a process that started late last year. Its goal was to deliver some improvements for its smart contract features.
Traders likely believe the upgrade will not have a major impact on the network’s ability to attract developers and investors. Besides, there are signs that many people who were interested in Pi Network during its pre-listing period have abandoned the project. That’s because the project has not achieved the goals the developers made, including becoming a popular player in the payments industry.
A good example of this is in the daily trading volume, which has remained substantially low in the past few months. Data compiled by CoinMarketCap shows that its volume stood at just $16 million in the last 24 hours. While this was a 108% increase, it is significantly lower than other popular coins, including XRP and Bitcoin.
Most notably, the low volume has coincided with the growing token unlocks. It is estimated that the network will unlock over 1.7 billion tokens in the next 12 months. The unlocks will continue in the foreseeable future, given that there are 11.2 billion tokens in circulation against a maximum supply of 100 billion. Token unlocks normally lead to higher supply.
This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments involve risk, and technical indicators or network upgrades do not guarantee future price performance.
