Watch Out: Pi Coin Faces Potential Price Plunge Amid Surging Supply

The Pi Network and its main asset, Pi coin, have recently made headlines again. However, this time the focus is on warnings about a potential dramatic price drop rather than hopeful increases. Over the past two days, Pi coin has fallen by approximately 20%, trading around the $0.60 mark at the time of writing. Experts suggest that the price could drop by as much as 35% to 50% from this point.

Increased Supply Could Drive Price Down

According to cryptocurrency analyst Dr. Altcoin, the primary reason for the recent decline in Pi coin’s price is the uncontrolled release of new coin supply into the market. More than 100 million Pi coins are set to be unlocked in April alone. Over the course of the year, this figure could exceed 1.5 billion. If demand fails to keep up with such a high supply, it is suggested that the price could dip to as low as $0.30.

Dr. Altcoin believes that the price drop is inevitable unless the Pi Core Team takes significant steps to control the supply. Moreover, this is not merely a prediction; current data shows that the price is already progressing on a fragile ground, failing to break strong resistance levels. As long as the resistance at $0.78 is not surpassed, downward pressure may continue.

Many experts argue that the second major reason for the depreciation of Pi coin is its inability to reach a sufficient buyer base in the markets. Pi is not yet listed on major exchanges like Binance or Coinbase , complicating access for potential new investors and limiting its upward price potential.

Possible Solutions and Technical Indicators for Pi Network

Some experts suggest that mechanisms like coin burning should be introduced to cope with the surplus supply. It is known that the Pi Core Team holds over 70 billion Pi coins. Even burning a small portion of this amount could positively impact the price. There has also been a proposal to burn a portion of transaction fees collected within Pi applications. Such coin burning models have been used previously in networks like Ethereum $1,598 to stabilize prices.

On the technical analysis side, a falling wedge formation is notable. Typically, such formations indicate a potential downward breakout. If the price breaks this pattern downward, there is a possibility it could fall to $0.402. Conversely, if the price rises above $0.78, it may aim for the $1 target again. Analyst Moon Jeff emphasized that if the support at $0.61 is strongly maintained, Pi coin could rebound.