Pi Network's Native Token Reclaims Ground, but Challenges Remain
Pi Network token value experiences a 20% increase, yet encounters resistance at the $0.9 price mark.
After a tumultuous period in May, Pi Network's native token, PI, is showing signs of recovery, with bulls defending key support levels as the cryptocurrency attempts to reclaim higher price targets. Currently trading at $0.84, the token has witnessed an 8% increase in the last 24 hours and a 30% surge over the past month.
This recent price action represents a significant turnaround from PI's downtrend. Over the last four days, the token has gained 20%, with daily trading volume surging more than 150% to $548 million, indicating renewed market interest. However, trading volume has yet to match the surge seen a week ago when PI rallied 114% in six days.
Data from Coinalyze suggests that bullish conviction remains hesitant in the short term. While the price has risen 14% in the last 24 hours with Open Interest climbing by 17%, the funding rate remains just above zero. These metrics indicate that short-term expectations are optimistic but not overly bullish. The positive sentiment may be partially influenced by Bitcoin's movements towards new all-time highs.
Despite technical improvements, Pi Network faces several fundamental challenges that could limit its price recovery. The token still lags 77% below its all-time high of $2.99, set in February. Millions of users remain frustrated by mainnet migration and KYC verification delays, hindering access and transfers, particularly in China. The token also lacks listings on major exchanges such as Coinbase or Binance, despite community support for such listings.
Market depth on platforms like OKX remains below $100,000, restricting growth potential due to limited liquidity. Another concern is utility — in the absence of significant DeFi projects or dApps, demand for PI is primarily speculative. A rally to $1.35 just before the $100 million Pi Network Ventures fund announcement on May 14 quickly reversed, illustrating how fragile sentiment can be without real-world use cases.
Over 1.47 billion PI tokens are scheduled to unlock over the next year, which could increase selling pressure unless balanced by token burns or rising demand. If buyers maintain support near $0.74 and breakthrough resistance at $0.90, a move towards $1 becomes possible, especially with sustained trading volume. However, without addressing these structural issues, PI could fall below $0.74, potentially triggering another downward trend.
Unless there's a surge in demand in the short term, PI may struggle to rally past the $0.9 resistance level. However, a move beyond $0.9 with increased buying pressure could offer a buying opportunity for traders.
- The recovery of Pi Network's native token, PI, has been correlated with the movements of Bitcoin, as the latter approaches new all-time highs.
- Even though Pi Network lacks listings on major exchanges such as Coinbase or Binance, traders might find a buying opportunity if the token manages to break through the resistance at $0.9, given a surge in demand.
- The future price movement of Pi Network, trading at $0.84, could be influenced significantly by the resolution of fundamental challenges like mainnet migration and KYC verification delays, particularly in China, and the development of DeFi projects or dApps for increased utility.
