Pi Network Price at Risk of a Crash as CEX Reserves Jump by 30%
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The post Pi Network Price at Risk of a Crash as CEX Reserves Jump by 30% appeared first on Coinpedia Fintech News
The price of Pi Network (PI) is now facing a serious risk of crashing. In the last three months, the number of PI coins sitting on centralized exchanges (CEXs) has jumped by 30%. At the same time, trading activity has dropped sharply.
Thus, analysts warn that PI could drop further, possibly reaching as low as $0.40.
CEX Reserves Jump by 30%
Over the past three months, the number of PI coins sitting on centralized exchanges has grown fast, from around 263 million in March to 345 million, that’s a 30% jump.
Usually, when coins are moved to exchanges in large amounts, it’s a sign that sellers may be getting ready to cash out.
Interestingly, this rise in exchange supply is also being fueled by outflows from wallets connected to the Pi Foundation team. While it’s not clear why these movements are happening, some traders are worried the team could be preparing to offload some of their holdings.
Trading Volume Drops 90% – A Red Flag
When too many coins flood the market, prices often fall. And with trading activity drying up, that risk becomes even greater.
It dropped from over $5.4 billion to under $500 million within a few weeks, that’s a 90% fall. When fewer people are buying and selling, the market becomes weak. Even a small sell-off could cause the price to fall sharply.
June 28 Is Now Make-or-Break
Meanwhile, Pseudonyms Crypto analyst Dr. Altcoin has suggested that Pi could fall to as low as $0.40, especially if there’s no major update or announcement from the team by then.
Others are still holding out hope for a bounce back to $1.70, but the outlook leans bearish for now.
As of now, Pi coin is trading around $0.56, reflecting a drop of 1.4% seen in the last 24 hours, with a market cap hitting $4.13 billion.
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