The Pi crypto price has been in a freefall this month, continuing a trend that began late in November. Pi Network (PI) token dropped to $0.2145, its lowest level in almost a month. It has dropped by approximately 25% from its November high, indicating it has entered a local bear market.
The token has dropped as third-party data shows that its demand has largely dried up in the past few days. According to CoinMarketCap, its 24-hour trading volume fell 15% to $14 million, a relatively small amount for a large cryptocurrency with a fully diluted valuation of over $21 billion. Most of its volume was on OKX, one of the biggest cryptocurrency exchanges in the industry, followed by Bitget, Gate, and MEXC.
Lawsuit Against Developers
One potential reason why the coin’s volume has dropped sharply in the past few days is a recent lawsuit filed against the Pi Network development team by an American investor who claims to have lost money betting on the token. However, some analysts have questioned the lawsuit, pointing to some inaccurate statements made by the plaintiff. For example, it was noted that the token’s price dropped from $307.49 to $1.67, which is inaccurate as it peaked at $2.99 in February.
It is suggested that the plaintiff might be citing the price of Pi Network’s IoUs, which were used to trade before the mainnet launch in February. The Pi Network’s team had no involvement with these IoUs. Furthermore, the plaintiff argued that 5,137 coins were moved from his wallet without his knowledge, an assertion that will be difficult to prove in court. The Pi Network team has yet to issue a formal response to the lawsuit.
Pi Crypto Price Technical Analysis
The daily timeframe chart indicates that the Pi crypto price has experienced a sharp sell-off over the past few days, as investors booked profits following a strong performance in November. The price has formed a double-top pattern at $0.2828 and is now approaching the neckline at $0.2020, which represents its lowest level in November. A move below this level will signal further downside, as it will confirm the double-top pattern.
A drop below the $0.2020 level is likely to trigger further selling pressure, potentially pushing the price towards the next key support level at $0.1530, its lowest point in October of this year. The current bearish outlook will be invalidated if the price manages to rise above the 50-day moving average, which is currently situated at $0.2375.