Pi Network breaches support even as rebound catalysts emerge

Pi Network’s native token, PI, has dropped sharply in recent days, falling to around $0.86 on May 16 as many anticipate a price rebound amid growing catalysts. Pi Network ( PI ) has now dropped over 40% from its weekly peak of $1.57 and is more than 71% below its all-time high of $2.99, which was reached in late February. The latest drop came despite what appeared to be a major development. On May 14, the Pi Foundation announced a $100 million venture fund aimed at supporting startups in areas like AI, gaming, fintech, and e-commerce. The initiative hopes to boost real-world use of the Pi ecosystem, but the market reaction was negative. Many traders had anticipated a major exchange listing, which would have brought significant liquidity and price discovery. The news likely triggered a “sell the news” response from the market because there was no listing in sight. You might also like: A 90-year-old theory suggests the Pi Network price may surge soon Looking at the technical picture, PI is still has breached the $0.89 support level, which was acting as a crucial floor in the recent decline. At about 54, the relative strength index indicates neutral momentum. Pi Network price analysis. Credit: crypto.news While short-term moving averages remain weak, longer-term trends that span 20 to 50 days show some underlying strength. The overall trend remains unclear despite some indicators showing early signs of recovery and a slightly bullish moving average convergence divergence. Several upcoming events may shift the narrative. The project’s founder, Dr. Nicolas Kokkalis, is scheduled to speak at Consensus 2025, a major blockchain event. Rumor has it that the team may use the event to showcase a network decentralization plan. Another major update is the deactivation of the core node of the Pi Network, which indicates a move toward a more open system. Meanwhile, there is still speculation regarding possible exchange listings. Strong community support and wallet activity linked to Binance have raised expectations that PI will soon list on a major platform. Even though no formal listing has been announced, a move like this could raise liquidity. One concern that continues to weigh on price is token supply. Over the next 12 months, an estimated 1.47 billion PI tokens are set to be unlocked . This could put downward pressure on the market if there isn’t a lot of corresponding demand. Many users are calling for a token burn, which could help ease selling pressure if implemented. If Pi Network delivers key updates at Consensus 2025 and confirms a path toward decentralization or listings, the price could recover above $1. Failure to meet expectations may push it back toward $0.75. Read more: Polygon price at risk of a 40% crash despite DeFi, stablecoin gains

Source: crypto.news