Pi Network price falls as top whale resumes purchases despite lawsuit

Pi Network price continued its downtrend today, Dec. 8, as a lawsuit filed against the developers in October emerged. 

Pi Coin (PI) token dropped to $0.2200, its lowest level since Nov. 16, and ~23% below the highest point on Nov. 28. It remains much lower than the all-time high.

The ongoing Pi Network price crash happened after details of a lawsuit against Chengdiao Fan, Nikolas Kokkalis, Pi Community Company, and Socialchain emerged. 

This lawsuit was filed by Harro Moen, who accused SocialChain and its executives of conducting a “massive fraud” through token transfers, secret sales of 2 billion tokens, and deliberate migration delays. 

He also argues that the company and its executives misled over 60 million users to believe that it was a decentralized network. He noted that Pi was a centralized project maintained by three validator nodes controlled by the company. Pi Network and its team have not responded to the claims.

It is not the first time that Pi Network has been called a scam or fraud. In February, shortly after the mainnet launch, Bybit’s CEO, called the company a scam, explaining why his exchange would not list it.

Still, the ongoing legal issues have not prevented the biggest whale from continuing his accumulation. Data show that the whale moved 1.62 million tokens from OKX three days ago, and another 430,536 on Sunday. 

The whale also moved a small amount of tokens from Gate.io, possibly as he was testing the process, in a sign that he plans to continue the accumulation process. He now holds 390.97 million tokens worth about $86 million, a sign that he expects the price will rebound in the coming weeks.

Pi Network price technical analysis 

The daily timeframe chart shows that the Pi Network price has remained under pressure in the past few weeks, falling from a high of $0.2820 on Nov. 28 to the current $0.2190.

The token is attempting to move below the Supertrend indicator, which would be a bearish sign. It also remains below the 50-day Exponential Moving Average, while the Relative Strength Index has moved below the neutral point at 50. 

Therefore, the token will likely continue falling, with the next key support level being the psychological level at $0.20. 

In the long term, however, there is a likelihood that the token will rebound as it is now in the accumulation phase of the Wyckoff Theory.