Aniket Pujari
Pi Network remains in a deep bear market and is facing significant risks ahead of the much-anticipated Pi Day.
Pi Coin (PI) dropped by over 45% from its highest level in February, bringing its market cap to over $11.7 billion and its fully diluted valuation to $164.35 billion.
The token will be in the spotlight on Friday as the world celebrates Pi Day, which honors the mathematical constant π (pi). Pi Day is celebrated on March 14 each year, aligning with the value of pi (3.14). This event could spark increased interest in the token.
However, Pi Network faces several potential risks that could impact its price in the coming days.
First, popular tier-1 exchanges are yet to list it even after it became one of the biggest coins in the crypto industry. Binance, which had a popular poll on Pi Network listing has not confirmed when this will happen.
Other major platforms like Gemini, Kraken, Upbit, and Coinbase have also not listed Pi Coin. A listing on Coinbase and Kraken would open the token to the U.S. market, while Upbit would increase its exposure in South Korea.
Second, Pi Network faces substantial dilution risks in the future since its circulating supply is 7.1 billion against a total supply of 100 billion. Over 188 million new tokens will be released this month, while over 1 billion will be released later this year. Token unlocks are bearish because they introduce new tokens, which lead to dilution.
Pi Network price has formed two risky patterns
Third, there are signs that the Pi coin price has formed two risky patterns that may lead to more downside in the coming weeks. It has formed a head and shoulders pattern, which often leads to more downside. This pattern is made up of a head, two shoulders, and a neckline.
Most recently, the token has formed a rising wedge pattern, a popular bearish sign. This pattern is made up of two ascending and converging trendlines, and a breakdown happens when they near their confluence level.
Therefore, there is a risk that the token will drop, potentially moving below the psychological point at $1.
