Why is PI Network (PI) Down Today? Price Analysis

The Pi Network (PI) token price slumped to $1.10, shedding by over 17% in the past 24 hours. Currently ranked 17th on Coinmarketcap with a market cap of approximately $7.7 billion, the token has slid at least seven places in the rankings over the last two weeks.

PI entered a new era on February 20 with the launch of its Open Network phase, marking its transition into a fully operational blockchain. This sparked excitement, leading to a price surge that peaked at nearly $3 on February 27. However, the momentum was short-lived, and PI has since faced a steep decline.

Key Factors Contributing to PI’s Freefall

One major factor in PI’s slump is the conclusion of the KYC verification process. The Grace Period, which allowed users to complete their identity verification, ended on March 14 without an extension. The Pi Network team had previously warned users that failing to complete KYC could result in forfeiting most of their mined tokens. This created uncertainty within the community, leading to panic selling and a decline in price.

Another crucial aspect is Binance’s silence. In February, rumors circulated that Binance might list PI after OKX, Bitget, and MEXC embraced the token. Binance even conducted a community vote where over 86% of participants supported listing PI. Despite the overwhelming support, Binance has yet to act, leaving investors frustrated.

Similarly, major exchanges like Coinbase and Kraken have steered clear of PI, adding to the skepticism. Bybit took a more direct stance, publicly stating that they would not list PI, with CEO Ben Zhou going as far as to call the project a scam. The reluctance of top-tier exchanges to support PI has dampened investor confidence, further pressuring the price downward.

PI/USDT Price Analysis

The PI/USDT chart on Tradingview reveals a descending channel in the 4-hour time frame. Price is currently sitting at crucial support of around $1.10, doubling as the channel's upper trendline. 

At the moment, there are no strong signs of reversal. However, if the bulls manage to hold off the sell pressure, PI price could return towards the 20-day Moving Average (MA) at $1.37. Failure to push it toward this area, the price could break down into the channel, targeting the lower trendline support of $0.87. 

Despite the recent downturn, buyers will need to remain optimistic and help the price reclaim the 20-day Moving Average.

While the future of PI remains uncertain, it’s clear that the token is facing multiple challenges. Investor sentiment, exchange support, and broader market trends will play crucial roles in determining whether PI can recover from its current slump or continue its downward trajectory.