The Pi Network price remained in a tight range today, January 12, continuing a trend that has been going on since the second week of December.
Summary
- The Pi Network price remained within a tight range on Monday.
- Daily volume dropped to just $6 million.
- It has formed a rising wedge pattern, which points to more downsides.
The Pi Coin (PI) token was trading at $0.2075, much lower than the all-time high of ~$3, which it reached shortly after the mainnet launch.
The ongoing consolidation is largely due to declining investor demand. Data collected by CoinMarketCap shows that volume in the past 24 hours was just $6 million, a small amount for a cryptocurrency with a market cap of over $1.7 billion. The volume was much lower than that of other smaller cryptocurrencies such as Render, Cosmos and Official Trump.
Pi Network’s volume declined even after developers launched new tools to make it faster for their developers to incorporate payments into their applications. The new tools include the Pi SDK and backend APIs to ensure they can integrate these payments in minutes.
The Pi team is also working on the decentralized exchange, automated market and token creation tools, which will be launched later this year. They hope these tools will help increase Pi’s usability over time.
There are a few reasons why Pi Network’s volume has dropped in recent months. Firstly, unlike most tokens, Pi is not listed on most mainstream exchanges such as Coinbase and Binance.
Secondly, there are concerns about the daily unlocking of tokens, which increases their supply. The network will unlock more than 1.2 billion tokens this year.
Furthermore, Pi is a highly centralized network in the crypto industry, with the obscure Pi Foundation owning billions of tokens.
The Pi Network price is at risk of a deeper dive
The daily chart shows that the Pi Coin has formed very bearish chart patterns, indicating more downsides. It is forming a rising wedge pattern, which consists of two rising and converging trend lines. These two lines are nearing their convergence, which will lead to a bearish breakout.
The coin has also formed a bearish pennant pattern, a common continuation sign. It remains below the 50-day exponential moving average and the Supertrend indicator.
Therefore, the most likely Pi forecast is bearish, with the next major target being $0.1918, the December low. A drop below that target will increase the chances of it hitting its all-time low.
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