The Pi coin price has slumped and is hovering near its all-time low, even as Bitcoin and most altcoins have rallied.
Pi Network (PI) dropped by 26% over the past 30 days, erasing millions of dollars in value as its market capitalization fell to $3.4 billion.
The token has declined despite several bullish catalysts. One of them is the network’s positioning as an artificial intelligence token. The team recently launched Pi AI Studio, a tool that enables users to build and launch AI-powered applications within minutes.
Pi Network aims to support developers through its broader ecosystem, which includes .pi domains, an online wallet, and an advertising network. These tools are designed to make it easier to create and monetize applications.
The platform also introduced a staking mechanism on Pi2Day, allowing pioneers and businesses to stake tokens to support and promote the ranking of Pi applications within the ecosystem interface.
These users stake their tokens to help applications rank. Some of the top-staked apps include Fruity Pi, Maps of Pi, and Thepitogo Services.
A likely reason why the Pi coin price has plummeted is that its supply increases daily due to unlocks. PiScan data shows that 130 million more coins will be unlocked this month, bringing the circulating supply to over 8 billion.
On the positive side, the pace of token unlocks is expected to slow over the next three months. The network will unlock 139 million tokens in August, followed by 117 million in September and 93 million in October.
Another bullish factor is that the Pi coin is likely to benefit from a prolonged crypto market rally. Many altcoins, especially the cheaper ones, do well when Bitcoin is rallying or when there is an altcoin season.
Most importantly, there is still a slim chance that one or more exchanges will list it this year. The most notable exchanges would be tier-1 names like Binance and Upbit.
Pi Coin price technical analysis
Despite pressure, the Pi Network price has formed several bullish technical structures. Notably, it has formed a double-bottom pattern at $0.4087, marking its lowest swing levels in April and June.
Pi coin has also formed a falling wedge pattern, a common bullish reversal indicator. As a result, the token is likely to bounce back and potentially retest the psychological level at $1. A move above that level would open the door to further gains toward the double-bottom’s neckline at $1.66.
