Here’s why the Pi Network Coin price is crashing today

Pi Network Coin price has suffered a harsh reversal in the past few days, moving from last week’s high of $0.2050 to the current $0.1580. It has slipped to its lowest level since February 14.

Pi Coin (PI) token has dropped by over 23% from its highest point this month and 90% from its all-time high. This retreat has pushed its market cap from over $19 billion to $1.4 billion. 

Pi Coin price has dropped amid profit-taking

Pi Network has slumped because of the broader crypto market crash that has affected Bitcoin (BTC) and other altcoins. Bitcoin dropped below $65,000, while top altcoins like LayerZero, Hyperliquid, Mantle, and Lighter fell by nearly 10% in the last 24 hours.

The retreat is also happening as investors book profits after the recent surge. Pi Network was up by 60% between its lowest and highest levels this month as traders waited for the first anniversary of the mainnet launch. It also jumped amid optimism that Kraken will list it soon.

The other potential reason for the sell-off is that the team’s address on the future did not address key issues. This address focused on priorities like boosting it utility growth and the upcoming KYC-as-a-Service, which will see it compete with World and Humanity Protocol.

However, the video did not address pressing issues that have led to a crash. For example, it did not talk on tokenomics, including the ongoing token unlocks and the fact that it does not have a deflation mechanism like token burns.

The developers also did not talk about ways to make it a decentralized network where the community votes on key issues. Today, all decisions are made by the team, while the obscure Pi Foundation holds billions of tokens. 

Additionally, they did not address the future plans on exchange listings as Pi is only available in a handful of exchanges.

Pi Network Coin price technical analysis

The daily timeframe chart shows that the Pi Coin price has slipped in the past few days. After peaking at $0.2050 last week, it has dropped to $0.1600.

The coin has remained below the 50-day moving average and the Supertrend indicator. It has also slumped below the Ichimoku cloud indicator. 

The most likely Pi Network price forecast is bearish, with the next key target being the year-to-date low of $0.1290. A move to that level may be bullish as it will be a double-bottom pattern whose neckline is at $0.2050. On the other hand, dropping below that level will invalidate the bullish outlook and point to more downside to $0.100.