Key Takeaways
PI coin dropped about 14% in the last 24 hours following broader market drop and transactions which were failing more than succeeding. Still, holders were losing confidence in the altcoin.
At the time of writing, Pi Network [PI] dropped by more than 14% in the last 24 hours. However, it still maintained a market cap of $2.72 billion as per CoinMarketCap.
The trading volume surged to $159 million, doubling in size—likely driven by selling pressure as the price failed to maintain momentum after the initial launch hype.
Why is PI coin price down?
Assessing the potential reasons for this PI crash, it was evident that about three factors were responsible for this.
One, the broader market cap of crypto was in a downward spiral following Donald Trump’s tariff regulations that kicked in on the 1st of August.
Again, the network was seeing more failed transactions which constituted about 58% of the total 200K in a day.
Per data from PiDoor, the successful transactions were 122K while 88.3K failed. Additionally, the total number of transactions fell in the month of July, extending to August.
Source: PiDoor
Also pressure from unlocks of PI coin may have fueled the decline.
According to PiScan data, nearly 5 million PI tokens—worth approximately $1.73 million—were circulating at press time. Over the next thirty days, an additional 159 million PI tokens, representing about 2.1% of the total supply, are scheduled to be unlocked.
Beyond the numbers, community sentiment is weakening. PI’s price continues to decline amid a slowdown in ecosystem activity, and progress on mainnet migration remains limited, further dampening investor confidence.
Regarding this, Pi Barter Mall expressed dissatisfaction while asking community users not to wait for pioneers actions. In his tweet on X (formerly Twitter), Pi Barter Mall wrote,
“How can we lock up when there’s no guarantee of value?”
When will PI’s price stop dropping?
On a numerical perceptive, PI’s price had flipped back to full bearishness with price at $0.35, at press time. The free fall from $0.44 was supported by the Trend Strength Index which was at minus 0.8482.
Moreover, the bearishness was volatile as the Bollinger Bands opened from the squeeze that lasted for one month. The $0.44 to $0.50 levels were the most traded zone as the VPVR indicator denoted.
Source: TradingView
The drop in value of PI coin could continue but the current price levels historically produced a 70% move to the upside. That said, a whale bought more than 331 million worth $148.5 million anticipating a similar move would be replicated.
However, since the community confidence had faded, this could be an uphill task.
