Pi coin value showed a lot of promise earlier this month, as evident optimism among holders. That optimism manifested in the form of an impressive 188% rally in the second week of May, but the hype was shot lived and the bulls were shot down.
To put Pi coin value and performance into perspective, the rally kicked off while the cryptocurrency was discounted by over 80% from its ATH. This massive discount partly explained its appeal.
Pi Network price peaked at $0.90 at its peak in May, but it has since retraced to its $0.71 press time price tag. A 57% dip in about 2 weeks. But can the cryptocurrency pull off another rally, considering its recent discount?
Pi coin price action/ source: TradingView Its RSI recently extended its decline below the 50% level, signaling further weakness in favor of the bears. A reflection of the growing bearish sentiment around the cryptocurrency. Moreover, bearish expectations continue to pile up as confidence continues to deteriorate. But just how low can Pi coin go?
Analyst Predicts Pi Coin Value To Dip Further
One X-based analyst under the pseudonym Dr. Altcoin recently predicted that Pi coin value will likely continue to decline until August. The analyst even predicted that the price would likely drop as low as $0.40.
A dip to the $0.40 means the Pi coin price will retest support at the same floor price where it bottomed out in April. The analyst also highlighted a major source of concern that could be holding back investors.
Pi Network Core Team Faces Backlash
Dr. Altcoin accused the core team behind the Pi network of failing to ensure transparency. He believed that this was one of the main reasons why the crypto has been struggling to attract investors.
The coin’s performance in May underscored a heavy focus on short-term gains. Confirmation that most investors buying into the coin were still not convinced of its ability to deliver longer-term upside.
On top of that, the transparency concerns may have played a heavy hand in Pi’s failure to list on major exchanges. The analysts believe that the coin could potentially achieve a substantial recovery if the core team focused on boosting transparency.
However, these were not the only concerns that have been holding back Pi coin value.
Pi coin Unlock Schedule Continues to Raise Concerns
The Pi network has been holding monthly coin unlock events through which more coins have been flooding the market. Consequently, the coin’s supply has been inflationary, and this outcome has been diluting any liquidity inflows and suppressing the price.
For context, over 35.5 million Pi coins were scheduled to be unlocked in May. An amount that was more than the collective sum of Bitcoin coins that will ever be released in one month.
Moreover, the May unlock schedule was the lowest scheduled monthly amount to grace the market. All the other months, all through to May 2028, will feature a higher number of coins that will be unlocked and sent into the market.
As a consequence, Pi coin value will likely continue struggling to maintain any momentum, considering the aggressively rising circulating supply. This factor has also arguably contributed immensely to the cryptocurrency’s attractiveness in the market.
This combination of aggressive supply and weak demand suggests a high probability of Pi coin tanking to $0.40 and potentially even lower. This also explained why investors remained focused on short-term spikes.
Can Pi Coin Value Rebound?
Amid the freefall of Pi Coin value, discussions are soaring about whether Pi Network could witness a recovery anytime soon. So, how can the crypto achieve a steady recovery ahead?
Such an outcome may still be possible, especially in the event of a launch on a major exchange such as Binance.
This is because such a listing would expose Pi coin to a sea of massive liquidity and millions of potential buyers. Notably, a recent listing from MEXC has fueled optimism in the Pi Community.
Besides, the token unlocks will be lower from August. Considering that, Dr Altcoin might have predicted a likely recovery for Pi Coin value from August.
However, that may not necessarily guarantee a long-term bullish outcome, especially as the Pi Network Core team faces heavy backlash from the community.
