Pi Network (PI) Price: Holders Exit as Correlation with Bitcoin Decreases to 0.52

TLDR

• Pi Coin is currently trading at $0.40, down significantly from its all-time high of $2.98
• Correlation with Bitcoin has declined to 0.52 as Bitcoin reaches new all-time highs
• Investors are increasingly exiting the network as bearish sentiment grows
• Pi Coin risks falling to support levels at $0.36 or possibly its all-time low of $0.32
• Despite current struggles, some analysts maintain long-term optimism for the project

Pi Coin’s price has been on a downward trajectory, moving dangerously close to its all-time low (ATL). Currently trading at $0.40, the cryptocurrency is struggling to maintain support at this level.

The altcoin has experienced a significant decline from its all-time high of $2.98 recorded in February, losing approximately 80% of its value since the mainnet launch.

One concerning factor is Pi Coin’s weakening correlation with Bitcoin, which now stands at just 0.52. This reduced correlation is particularly troubling as Bitcoin recently formed a new all-time high within the past 24 hours.

While Bitcoin surges, Pi Coin’s detachment from this upward movement signals possible waning investor confidence. The failure to align with Bitcoin’s bullish momentum casts doubt on Pi Coin’s short-term recovery prospects.

Investor sentiment surrounding Pi Coin has grown increasingly negative. A noticeable trend of exits from the network has been observed over the past few days, with many holders losing faith in the altcoin’s future potential.

This exodus of investors is further driving the price down, creating a negative feedback loop that pushes Pi Coin closer to its ATL.

Recent Price Movement

Despite the overall bearish trend, Pi Coin did experience a brief surge, rising nearly 7% and extending its weekly gains to 19%. This temporary uptick suggests there remains some interest in the token.

However, trading volume has declined by 25% to $73 million, indicating that this surge may not have strong momentum behind it.

Pi Network Price on CoinGecko

If Pi Coin fails to hold the $0.40 support level, analysts expect it could drop further toward the next support at $0.36. Should this level also fail, Pi Coin risks returning to its ATL of $0.32, which would erase recent gains.

On the other hand, if Pi Coin successfully bounces off the $0.40 support, there may be a chance for recovery. A rise above this level could potentially break the downtrend and push the price toward $0.44.

Long-Term Perspective

Despite current challenges, some market pundits remain optimistic about Pi Coin’s long-term potential. Critics have called Pi Network a failed project, but supporters point to several factors that may contribute to future success.

Dr. Altcoin, a renowned Pi Community enthusiast, highlights the project’s six-year development period as evidence of its commitment to building a stable foundation rather than generating short-term hype.

The project offers essential security features including Know Your Business (KYB) for centralized exchanges and KYC compliance, which may appeal to security-conscious investors.

Dr. Altcoin has revealed his own accumulation strategy, aiming to acquire between 100,000 to 150,000 Pi coins within the next 2-3 years as part of a 5-year holding plan. He has even redirected monthly pension contributions to weekly Pi investments.

Market analysts suggest that the delay in listing on tier-1 exchanges like Binance has triggered the recent selloff. The lack of clarity from the Pi Core Team regarding future prospects has further dampened sentiment.

Pi Coin holders are now at a crossroads. The price currently sits at $0.40, attempting to maintain this level as support while distancing itself from the ATL.

Unless there is a significant shift in investor sentiment or positive developments from the Pi Core Team, the cryptocurrency may continue to struggle within its persistent downtrend.

Pi Network’s initiatives, including the AI App Studio and a $100 million fund invested in projects like OpenMind, are cited by supporters as evidence of the project’s long-term vision.

For now, Pi Coin remains under pressure as investors continue to exit and its correlation with Bitcoin weakens, pushing the price closer to critical support levels.