Why is Pi Network Pi Coin Crashing Today On Pi Day

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The Pi Network community recently celebrated Pi Day on March 14, but instead of rallying, the native token PI experienced a significant crash in price. Within a 24-hour period, the price of PI dropped by approximately 26%, leaving investors puzzled as to what could have caused such a drastic decline. Let’s delve into the reasons behind the Pi network Pi coin price crash that occurred on Pi Day.

Sell-the-News Reaction After Kraken Listing

One of the main catalysts for the price drop is attributed to a sell-the-news reaction that ensued following PI’s listing on Kraken, a popular cryptocurrency exchange. Prior to the listing, the token had experienced a surge of over 30%, reaching close to $0.30 as traders eagerly positioned themselves ahead of the listing event. However, once trading commenced on March 13, many early buyers opted to take profits, triggering a rapid pullback in price. This type of price action is commonly observed in the crypto markets following long-anticipated announcements or listings.

Token Unlocks Raise Supply Concerns

Another factor contributing to the negative sentiment surrounding PI is the imminent release of new tokens into circulation. According to the Pi scan, the Pi network is scheduled to release 17 million PI tokens on March 17, followed by an additional 16 million tokens on March 20. As these new tokens enter circulation, the overall supply of the cryptocurrency, currently standing at 9.66 billion, will increase. This influx of tokens may exert short-term selling pressure on the market if holders decide to offload their holdings.

Pi v20.2 Network Upgrade Delayed?

In addition to supply concerns, the delay in the planned network upgrade to v20.2 has also impacted market sentiment. While the project had initially set March 14 as the upgrade date, it was later rescheduled to March 12. As of now, there has been no official confirmation from the team regarding the completion of the upgrade, although some community members speculate that it may have already taken place. The v20.2 update is expected to enhance the network’s security, speed, and reliability, enabling it to accommodate increased activity as the ecosystem expands.

Overall, the Crypto Market Is Struggling

The broader decline in the crypto market, with Bitcoin dropping below $71,000 amidst geopolitical tensions, has added further pressure on the price of Pi coin. Currently trading around $0.2042, Pi coin is approximately 86% below its all-time high. Analysts suggest that the token is currently moving within a liquidity zone between $0.18 and $0.20, with potential stability if it remains above this range. However, a breach below this support zone could see the price target fall towards $0.15.

In conclusion, the Pi Network community and investors are closely monitoring the developments surrounding the Pi coin price crash on Pi Day. With various factors at play, including the sell-the-news reaction, token unlocks, network upgrade delays, and market conditions, the future trajectory of Pi coin remains uncertain. Stay tuned for further updates on this evolving situation.

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