Pi Network price has pulled back from its all-time high. It initially peaked at almost $3 after the airdrop in February and has crashed by 45% to below $2. Pi coin remains significantly below the IoU price of $100, which it reached in November last year. This article explores why the value of Pi has retreated and why it may never jump to $100 again.
Why Pi Network Price Crashed from $100 to $2
The Pi Network price has dropped to slightly below $2 this week. This price is much lower than what the $100 that its IoU reached in November last year.
This decline is because the Pi Network IoU and the current Pi Network are different assets. Several exchanges like BitMart and HTX listed the Pi Network IoU in 2022 as impatient among pioneers grew. These pioneers were largely concerned that the mainnet launch was taking longer than expected.
Therefore, these Pi Network IoUs were used as proxies for the Pi Network project until the mainnet launch happened this year. HTX, whose token peaked at $100 in November, delisted it ahead of the mainnet launch and has now listed the main token.
There are four main reasons why the Pi Network price has dropped from the all-time high of $3 to the current $1.7200. First, the decline mirrors the performance of most recently launched tokens. Most tokens like Grass, Hamster Kombat, and Wormhole have dropped from their highest levels after the aidrop.
Second, there are concerns about the future Pi coin token unlocks. 188 million tokens will be released this month, while over 1.4 billion will be unlocked by December this year. Token unlocks lead to dilution, affecting existing holders.
Further, Pi Network price has dropped as the much-anticipated Binance listing remains on ice. Most participants in the Pi coin listing poll voted to allow it to go on, but the listing date has not been confirmed yet. Other mainnet exchanges like Coinbase and Upbit have also not listed it.
Fourth, Pi Network has crashed because of the ongoing trends in the crypto industry, where most cryptocurrencies have dropped. Bitcoin has dropped from $109,300 in January to $84,000 today. Historically, most altcoins have a close correlation with BTC.
Why Pi Coin Price May Never Hit $100
Pi Network is still in its price discovery phase. Critics argue that the coin’s best days are now behind it and that its upside will be limited, while proponents argue that the coin will copy Bitcoin’s price action and surge to $100 and above over time.
Chances are that the Pi Network price may never jump to $100. To do that, the coin needs to jump by over 5,700% from the current level. Such a move would bring its market cap to over $700 billion. Its fully diluted valuation would be $10 trillion, making it bigger than the current crypto market size.
Pi Price Forecast
The two-hour chart shows that the Pi Network price peaked around $3 in February and then retreated. It now remains slightly above the ascending trendline that connects the lowest swings since February 23. This trendline is likely the neckline of the head and shoulders pattern, a popular bearish sign.
Pi Network price chart
Pi coin has also formed a rising wedge pattern, pointing to a potential bearish breakdown in the past few days. Such a move would see it crash below $1 even as the Pi Day happens. A move above the resistance at $2 will invalidate the bearish Pi coin price forecast.
The post Here’s Why Pi Network Price Collapsed from $100 to $2 & Why it May Never Hit $100 Again appeared first on CoinGape.
