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Key Insights:
- Pi Coin value has plunged since its mainnet launch in February.
- The PI token price has formed a double-bottom and a falling wedge pattern.
- A potential Pi exchange listing will boost its price.
The Pi Coin value remains under intense pressure since its mainnet launch in February, costing pioneers and early investors billions of dollars. The Pi Network token price crashed for two consecutive months and was hovering near its February lows.
So, will the PI coin continue plunging in August or bounce back?
Why the Pi Coin Value Has Plunged Since Mainnet Launch
The Pi coin value has crashed for several reasons since its mainnet launch in February. First, it is one of the most inflationary tokens in crypto, a situation that will continue in the foreseeable future.
The CoinMarketCap data shows that it has a maximum supply of 100 billion and a circulating supply of 7.75 billion tokens.
The remaining 92.5 billion tokens will be released in the coming years. For example, PiScan data shows that 161.9 million Pi tokens will be unlocked in August this year, followed by 117 million and 93.4 million in the next consecutive months.
Altogether, over 1.27 billion Pi tokens will be unlocked in the next 12 months.
Token unlocks are normally bearish for a cryptocurrency because they increase the circulating supply. It is often more bearish when a token’s demand is waning and when there is substantial selling pressure.
In PI’s case, the token unlocks coincided with the selling by pioneers who continued to migrate their tokens from the enclosed mainnet.
Pi Network Ecosystem, Centralization, and Exchange Listings
The other reason why the Pi coin value has fallen is that its ecosystem has not lived up to expectations. Months after launch, there are not many businesses accepting Pi, mainstream games, and decentralized finance (DeFi) players.
Pi Network’s attempts to boost its ecosystem growth have not worked well. Its token has crashed by 74% since May, when the developers launched the Pi Network Ventures, which will invest $100 million in ecosystem tokens.
It also dropped recently when they launched the Pi AI Studio, enabling users to build AI applications. The .pi Domains auctions also did not boost the Pi ecosystem. Further, there are concerns about Pi Network’s centralization as the obscure Pi Foundation holds over 92 million tokens and is not audited.
Most importantly, Pi Coin value plunged as most mainstream exchanges avoided listing it. This token is only listed on exchanges like OKX, Bitget, MEXC, Gate, BitMart, and LBank.
Pi Coin Value Forecast for August
The daily timeframe chart shows that the Pi Coin value has been in a downtrend in the past few months. It crashed from a high of $2.9945 in February to the current $0.4173 level.
PI has remained below the 25-day moving average and the important resistance point at $1.6625, which is its highest point in May this year. On the positive side, there are signs that it has found a substantial support level at $0.3977, its lowest swing in April and June.
PI price has formed a giant double-bottom pattern at $0.3977 and a neckline at $.16625. This pattern implies that short sellers are afraid of shorting below the specific price.
The price target of a double-bottom is estimated by finding the height, which, in this case, is 76%. One then measures 76% from the neckline, giving it a target price of $2.9352. Such a move would imply a 600% short squeeze from the current level.
There are other bullish technicals as well. Pi Coin price has formed a falling wedge pattern, which is shown in orange. This pattern is made up of two descending and converging trendlines.
Pi Coin Value Might Soar in August
Pi coin value has fallen, and this plunge could change in August after it formed the highly bullish double-bottom and falling wedge patterns on the daily chart.
A potential catalyst that may drive it higher in August will be an exchange listing by one or more tier-1 exchanges like Binance, Upbit, or Coinbase. While no exchange has hinted at a potential listing, there is a slim chance that it could happen, potentially in August.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
