The Pi crypto price has been in a freefall this month, continuing a trend that began late in November.
Summary
- Pi Network price continued its freefall, reaching its lowest level since Nov.5.
- The daily volume of Pi plunged by 11% to $14 million, a sign of weak demand.
- This trend is happening after an investor filed a lawsuit against the developers.
The Pi Network (PI) token has seen a significant drop in value, now trading at $0.2145, marking its lowest price point in nearly a month. The token has plummeted by approximately 25% from its November high, signaling that it may have entered a local bear market. This decline in price has raised alarms among investors, who are now closely monitoring the token’s performance.
Recent reports from CoinMarketCap illustrate that demand for Pi has sharply declined over the past few days. The token’s 24-hour trading volume sank by 15%, down to $14 million. Generally, for a cryptocurrency with a fully diluted valuation exceeding $21 billion, this is a strikingly low trading volume. Most of the activity has taken place on OKX, one of the industry’s primary cryptocurrency exchanges, followed by Bitget, Gate, and MEXC.
A significant factor contributing to this declining trend appears to be a lawsuit filed against the developers of Pi Network by an American investor. This investor claims to have incurred losses while trading the token. Legal battles can often create uncertainty in the market, and this case seems to be no different. In particular, analysts have noted irregularities in the lawsuit, such as inaccuracies about the token’s price history. Reports indicate that the investor asserted that the price fell from $307.49 to $1.67; however, this is factually incorrect as the price peaked at $2.99 in February, prior to the token’s official launch.
It’s important to clarify that the plaintiff may be referencing the Initial Offering Unit (IoU) prices, which were used before Pi Network’s mainnet launch. The Pi Network development team did not facilitate these IoUs, which complicates the investor’s claims. Furthermore, the plaintiff alleges that 5,137 coins were transferred from his wallet without consent—an assertion that will present challenges in court regarding its verifiability. As of now, the Pi Network team has not released a public response to the ongoing lawsuit.
Pi Crypto Price Technical Analysis
A look at the technical charts gives further insight into the recent pricing behavior of the Pi crypto. Over the past few days, the token has sold off sharply, likely as investors opted to book profits following a strong performance in November. The daily timeframe chart reveals the formation of a double-top pattern around $0.2828, with the price now approaching a critical support level or “neckline” at $0.2020, which was its lowest point in November.
Breaking below this level could trigger additional selling pressure and might confirm the double-top pattern, leading to further price declines. Should the price fall below $0.2020, traders will closely watch for a drop towards the next significant support level around $0.1530, which had been established in October of this year. Conversely, a bullish outlook would be reinstated only if the price climbs above the 50-day moving average at $0.2375, indicating a potential reversal in market sentiment.
