In the last two days, Pi Network’s price has dropped almost 20%, shedding almost the maximum gain it made after surging back from its lowest-ever price of $0.38. Right now, Pi is trading around $0.61, which is nearly 400% lower than its all-time high.
But some experts say the price could drop even more — maybe by 35% to 50%. Let’s see why they think this might happen.
Why Pi Coin Dropping Continuously
Popular crypto expert Dr. Altcoin says Pi Coin is on the verge of falling even more, maybe 35% to 50% lower than where it is now. He thinks the main reason is that too many new Pi tokens are being released into the market.
This month alone, over 100 million Pi coins will be released. This year, more than 1.5 billion new coins will come into circulation. With so many new tokens and not enough people buying, the price might keep falling.
Dr. Altcoin also warned that if the Pi Core Team doesn’t do something to stop the supply from growing, the price could drop all the way down to $0.30 in the next few months.
Too Many Tokens, Not Enough Buyers
Other experts agree and say this is basic supply and demand. When there are more coins to sell, but not more people to buy them, prices go down. Right now, many people can’t even buy Pi Coin because it’s not listed on big exchanges like Binance or Coinbase, so the demand is still low.
What’s the Possible Solution?
Some experts suggest that the Pi Foundation could burn some tokens to reduce the supply. Right now, the team holds over 70 billion Pi coins, and burning even a small part could help support the price.
Another idea is to burn some of the transaction fees collected from Pi’s app ecosystem, like other blockchain projects already do.
Pi Coin Price Eying 50% Drop
The price of Pi Coin has dropped a lot, mainly because hundreds of millions of Pi tokens have been unlocked and added to the market. Recently, it lost 20% in value after failing to move above the strong resistance level at $0.78 last week.
Looking at the 1-day price chart, Pi Coin is seen forming a “falling wedge pattern,” which usually means the price will keep going down. If this happens, the coin could drop to $0.402, its lowest point this month.
But if Pi Coin goes above $0.78, it might start going up again and could even reach $1.
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