Pi Network (PI) collapses to a new low: more pain ahead?

PI continues to decline and is now the 75th largest cryptocurrency.

Moreover, some key indicators suggest that the downturn could worsen in the near term.

Finding a new bottom

Just a few hours ago, Pi Network’s PI plummeted to $0.17, which is the lowest level since the token began trading in February last year. Its market capitalization fell below $1.5 billion, making it the 75th largest cryptocurrency.

The latest move south could be partly driven by the bearish environment of the broader market, where Bitcoin (BTC) fell below $88,000 and Ethereum (ETH) briefly fell to $2,780.

Some key factors indicate that PI’s share price has not yet reached new lows. Data shows that nearly 150 million coins are expected to be unlocked in the next 30 days, a development that could increase selling pressure as it will give investors the opportunity to offload long-awaited assets.

Average token unlocks are just south of 5 million, which is much more aggressive than those in previous weeks and months. The record day will be February 7, when approximately 6.1 million tokens will be released.

Big adoption coming?

While PI’s price performance indeed seems depressing in recent months, some X users remain optimistic about the project. Kosasi Nakomoto recently noted that the “earn while you wait” model seems “childish” to many crypto natives, but predicted that in a few years, most people in emerging markets will likely have a Pi wallet.

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Meanwhile, PI’s Relative Strength Index (RSI) suggests the worst could be over and it could be time for a near-term recovery. The statistic ranges from 0 to 100 and indicates whether the asset is overbought or oversold. Ratios below 30 indicate that the valuation has fallen too much in a short time and a rally may be in the works, while anything above 70 is considered bearish territory.

Recently the RSI dropped below 30 and has since risen to 38.