Why is Pi Coin falling? The combination of deteriorating market sentiment, lack of catalysts, and whales pausing their purchases.

The price of the Pi Network Token (PI) continued its big dump on September 26, falling to a low of $0.2700, representing a cumulative decline of over 90% from its historical peak. This drop is a continuation of the ongoing trend since the Mainnet launch in February, primarily influenced by the overall deterioration of sentiment in the crypto assets market, a lack of significant catalysts, and the combined effects of an anonymous Whale pausing its daily purchases. Additionally, a massive Token unlocking plan and the failure of fund management institutions to attract sufficient assets further exacerbated the market's sell pressure and concerns.

The Two Major Market Factors Leading to a Decline in PI Prices

The price drop of Pi Network occurred against the backdrop of an overall weakness in the Crypto Assets market.

1. Market sentiment has generally worsened and liquidity has tightened.

· The market is generally falling: Most major crypto assets, including Bitcoin (BTC), Ethereum (ETH), and XRP, are in a downtrend, causing the total market capitalization of crypto assets to drop from a peak of $4.3 trillion at the beginning of the year to $3.8 trillion.

· Huge liquidation: The market liquidity pressure is immense, with over $1.65 trillion in positions liquidated just on Monday, and another $430 million liquidated on September 25, intensifying market panic.

· Macroeconomic Concerns: Several Federal Reserve officials (including Austan Goolsbee, Beth Hammack, and Raphael Bostic) have issued warnings against accelerating the rate cut cycle, arguing that it would trigger long-term inflation, and this hawkish rhetoric has further deteriorated market sentiment.

2. Anonymous Whale pauses purchases

· Whale activity changes: A direct reason for the fall in Pi Coin price is that a well-known Whale, which has been actively buying Tokens, has paused its purchases. This Whale stopped its daily accumulation three days ago.

· Technical support failure: The PI price has fallen below the important support level of $0.3315 from August and September, and remains below the 50-day exponential moving average (EMA), indicating continued bearish momentum.

Pi Network lacks catalysts and Token unlocking pressure

The lack of significant positive news and the enormous supply pressure from token unlocks have also become internal reasons for the continued sluggishness of the PI price.

· Insufficient fund attractiveness: The Valor Pi Fund has attracted less than $3,500 in assets over the past 30 days, indicating extremely low interest from institutional investors in the ecosystem.

· Lack of exchange listing: Since the launch of the Mainnet in February, Pi Network has not been listed on major exchanges, which limits its liquidity and credibility.

· Huge unlocking plan: Pi Network is facing significant token supply pressure:

· This month (September), 34.7 million Tokens will be unlocked.

· In October, 121.5 million Tokens will be unlocked.

· A total of up to 1.265 billion Tokens will be unlocked within the next 12 months, and such a huge supply will create long-term selling pressure on the price.

Technical Outlook: A Turning Point in Crisis?

Despite the ongoing fall, some analysts believe that the recent big dump may be a form of shakeout behavior, which could indicate a strong bullish breakout.

· Whale speculation: This bullish viewpoint is mainly based on speculation about whales, suggesting that their large accumulation before pausing purchases may indicate that they have insider information about significant news.

· Potential Reversal: Technical analysis suggests that after a large-scale washout, the market usually experiences a strong rebound, but this requires positive catalysts from the fundamentals or macroeconomic environment to align.

Conclusion

The continuous big dump of Pi Network Token prices is the result of the overall market panic and the lack of substantial catalysts. Although the project has been in a downward trend since the Mainnet launched in February, the sudden halt of Whale activities and the large Token unlocking plan have intensified investor uncertainty. Against the backdrop of widespread concerns about the authenticity of data and macroeconomic prospects, whether the PI Token can find new support around the current $0.27 and achieve a technical rebound will depend on whether it can bring new institutions or technological breakthroughs in the short term, thereby overcoming its enormous Token supply pressure.

Disclaimer: This article is for news information only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make decisions with caution.