Three Major Risks That Could Impact Pi Network’s Price Ahead of Pi Day

Pi Network is currently facing a number of significant risks as it approaches Pi Day, and these challenges could have a major impact on the price of Pi Coin in the near future.

One of the biggest hurdles Pi Network is grappling with is the lack of listings on major exchanges. Despite Pi Network becoming one of the largest cryptocurrencies by market cap, it has yet to secure listings on popular tier-1 exchanges such as Binance, Coinbase, Kraken, Gemini, and Upbit. These exchanges would offer greater liquidity and exposure to a broader audience, including major markets like the United States and South Korea. Without these listings, Pi Coin remains relatively inaccessible to a larger pool of investors, particularly retail investors who rely on major platforms to trade their assets. This limitation could suppress the coin’s potential for growth and hinder broader adoption.

In addition to the exchange listing issue, Pi Network is also facing considerable risks due to token dilution. At present, there are 7.1 billion Pi Coins in circulation, with a total supply of 100 billion coins. This means that a large portion of the total supply has yet to enter circulation. Token unlock events scheduled for the coming months, including the release of over 188 million tokens this month and more than 1 billion tokens later this year, could put significant downward pressure on the price of Pi Coin. As new tokens enter circulation, the overall supply of Pi Coin increases, which often leads to dilution of the existing tokens, ultimately lowering their value. This type of dilution is a common challenge for many crypto projects and can significantly affect price stability, especially if the market perceives the new supply as an overhang.

On the technical side, Pi Coin’s price charts show signs of two potentially bearish patterns: a head and shoulders pattern and a rising wedge. The head and shoulders pattern is a well-known technical indicator that typically signals a reversal of an uptrend, often leading to a decline in price. A rising wedge, on the other hand, is another bearish formation that occurs when price action creates two ascending trendlines that converge. When the price reaches the apex of the wedge, it often results in a breakdown, which could lead to further losses for the token. These patterns suggest that Pi Coin may face further downside pressure in the near term, potentially even falling below the critical psychological level of $1.

While Pi Day, which celebrates the mathematical constant π on March 14, could bring a surge of interest and attention to Pi Coin in the short term, the project’s long-term prospects will be heavily influenced by how it navigates these challenges. If Pi Network can secure listings on major exchanges, manage the risks of token dilution, and address the bearish technical indicators, there may be a path for growth. However, if these issues persist, Pi Coin could continue to struggle in the coming weeks and months. Investors should remain cautious and keep a close eye on how these factors evolve as Pi Day approaches.