Why Is Pi Network Price Down 40%

Pi Network’s price has recently taken a significant downturn, falling by 40% from its peak earlier this month. This sharp decline has raised questions about the coin’s future, especially as market conditions and technical indicators seem to be aligning in a way that suggests further volatility could be ahead.

The drop in Pi Network’s price comes after a series of bearish technical patterns formed on the charts. One of the most concerning signals has been the formation of a double-top pattern, where the price peaked twice at similar levels, first at $99 and again at $91.69. This pattern is often seen as a bearish reversal indicator, and the key support level—the neckline—has been identified at $44.96. If Pi’s price falls below this level, it could trigger further selling, adding more downward pressure on the coin. Additionally, the price action over the past few days has seen the emergence of other negative candlestick patterns, such as the inverted hammer and the three black crows formation, both of which typically signal a continuation of the downtrend.

However, it’s not all bad news for Pi Network. Despite the recent drop, there are some key events on the horizon that could provide the project with a much-needed boost. One of the most significant factors is the upcoming mainnet launch, which could serve as a pivotal moment for Pi Network. When the network transitions from its enclosed mainnet to the public mainnet, it will allow users, or “pioneers,” to sell their coins and participate fully in the ecosystem. This could create a new wave of demand for the coin, especially if the launch aligns with a broader market recovery.

Another important milestone is the Know Your Customer (KYC) verification deadline on November 30. This verification process will determine how many pioneers are eligible to receive Pi coins, and the successful completion of KYC by a large number of users could help spark renewed interest in the coin. Moreover, Pi Network has managed to build a significant ecosystem, with over 27,000 businesses already registered to accept Pi. This growing network could provide additional use cases for the coin once the mainnet is fully operational.

Finally, the timing of Pi’s mainnet launch could coincide with a more bullish sentiment in the cryptocurrency market, particularly if Bitcoin, the largest cryptocurrency, continues its upward trajectory toward $100,000. If this occurs, Pi could see a similar surge in price, much like other tokens have experienced during previous market rallies.

In conclusion, while Pi Network faces some immediate technical challenges and is currently experiencing a decline in price, the upcoming mainnet launch, KYC verification deadline, and the growing ecosystem could set the stage for a potential rebound. If the broader crypto market remains favorable, Pi Network may have the opportunity to recover and regain some of its lost value in the coming weeks. However, the price could continue to face pressure if it fails to hold key support levels.