Pi Network price continued its downtrend today, December 8th, as a lawsuit filed against the developers in October emerged.
Pi Coin (PI) token dropped to $0.2200, its lowest level since November 16th, and approximately 23% below its highest point on November 28th. It remains significantly lower than its all-time high.
The ongoing Pi Network price crash occurred after details of a lawsuit against Chengdiao Fan, Nikolas Kokkalis, Pi Community Company, and Socialchain surfaced.
This lawsuit was filed by Harro Moen, who accused SocialChain and its executives of conducting a "massive fraud" through token transfers, secret sales of 2 billion tokens, and deliberate migration delays.
Moen also argued that the company and its executives misled over 60 million users into believing that Pi Network was a decentralized network. He noted that Pi was a centralized project maintained by three validator nodes controlled by the company. Pi Network and its team have not yet responded to these claims.
This is not the first instance where Pi Network has faced accusations of being a scam or fraud. In February, shortly after the mainnet launch, the CEO of Bybit referred to the company as a scam, explaining why his exchange would not list the token.
Despite the ongoing legal issues, the biggest whale associated with Pi Network has continued its accumulation strategy in recent days. Data indicates that this whale moved 1.62 million tokens from OKX three days ago, followed by another transaction of 430,536 tokens on Sunday.
The whale also transferred a small amount of tokens from Gate.io, possibly as a test of the process, suggesting a continued plan for accumulation. This whale now holds 390.97 million tokens, valued at approximately $86 million, indicating an expectation of a price rebound in the coming weeks.
Pi Network Price Technical Analysis
The daily timeframe chart reveals that the Pi Network price has been under pressure for the past few weeks, declining from a high of $0.2820 on November 28th to its current level of $0.2190.
The token is currently attempting to move below the Supertrend indicator, which would signal a bearish trend. It also remains below the 50-day Exponential Moving Average, and the Relative Strength Index has fallen below the neutral point of 50.
Consequently, the token is likely to continue its downward movement, with the next significant support level anticipated at the psychological threshold of $0.20.
However, in the long term, there is a possibility of a price rebound as the token appears to be entering the accumulation phase as described by the Wyckoff Theory.