Pi Coin, the 24th-ranked crypto coin that had built a cult-like following among early miners, has faced a significant downfall. The coin, which once saw high expectations, has plunged by nearly 75%, leaving investors disheartened. Many long-term holders who mined Pi Coin for years are now questioning their investment as the market is not in favor of Pi. Crypto Investor and analyst
Investographer analyzed what went wrong and can Pi Coin can recover from this downward spiral.
The Hype and the Harsh Reality
Pi Coin was officially launched recently, gaining massive hype within just a month to a month and a half. Enthusiastic investors and long-term miners had high hopes, expecting the coin to perform well. However, its market performance has fallen far below expectations. Those who believed strongly in Pi Coin and its ecosystem are now facing a harsh reality.
Initially, Pi Coin saw a price surge, reaching nearly $3 around its listing date. However, the excitement was short-lived. By February 26, the coin attempted to reclaim the $3 mark but soon began its steep decline. In just a few days, Pi Coin crashed by nearly 75%, dropping to approximately $0.74. Currently, it hovers close to its all-time low of $0.60, indicating further bearish momentum.
Why Is Pi Coin Crashing?
According to analyst Investographer, one of the biggest reasons for Pi Coin’s decline is Binance’s rejection of its listing. The community had high hopes after Binance conducted a poll on whether to list Pi Coin. Despite the strong support from Pi Coin holders, Binance ultimately refused the listing.
Another critical factor is the lack of a fully open mainnet. Unlike truly decentralized cryptocurrencies, Pi Coin operates in a highly controlled and closed ecosystem. This limits liquidity, transparency, and the free trade of tokens. Users cannot freely buy, sell, or transfer their Pi holdings, leading to concerns about centralization.
Technically, what’s happening?
Pi Coin is approaching key technical levels. The nearest support level is at $0.60, while short-term support lies around $0.77. If the price breaks below $0.77, it could fall further to $0.70 and even test $0.60. On the upside, major resistance levels stand at $1 and $1.20, which need to be broken for any significant recovery. Key indicators like RSI are also hovering around oversold zone reflecting the bear phase to continue.
Will Pi Rebound?
The future of Pi Coin largely depends on whether the project can resolve concerns surrounding decentralization and liquidity. If buyers step in, Pi Coin could break resistance and climb to $1.22, with a chance of reaching $1.8050 if bullish momentum continues. However, if sellers take control, the price might drop to $0.64, and failing to hold there could lead to a new all-time low.
