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Pi Network price has stalled and is missing out on the ongoing crypto market boom, popularly known as Uptober, which continues. The token was trading at $0.26 on Friday, within a range it has maintained over the past few days. It has plunged by over 90% from its all-time high.
Pi Coin price has wavered on the same week that Bitcoin jumped close to a record high, and the Crypto Fear and Greed Index moved to the green zone. The market capitalization of all cryptocurrencies jumped to over $4.2 trillion.
Importantly, the token remained under pressure on the same week that Chengdiao Fan, its co-founder, talked at the TOKEN2049 event. This was a notable development, as it was her first time delivering a speech or participating in a panel discussion.
READ MORE: Crypto Market Rally: Why are Altcoins Going Up Today?
Also, Pi Network launched a testnet for decentralized exchanges (DEX) and automated market maker features in its testnet. The new feature will enable developers to build decentralized applications within the DeFi space.
There are three main reasons why the Pi Network price wavered despite these developments. First, the coin is still seeing weak demand from investors as evidenced by the daily volume. Its daily volume was just $33 million, a tiny amount for a coin with a market capitalization of over $2 billion.
Second, the weak demand has coincided with the ongoing token unlocks. It is unlocking over 125 million coins this month and over 1.2 billion in the next 12 months. More supply and lower demand will always affect an asset’s price.
Third, a mysterious whale who has been accumulating the coin has stopped his purchases. The lack of his substantial buying has had an impact on the demand.
Technical analysis suggests that the Pi Coin price is poised to fall further, as it has formed a bearish flag pattern on the four-hour chart. This pattern is composed of a vertical line, which occurred on September 22. It also has a parallel channel, which often leads to a bearish breakout.
If this pattern persists, the coin will likely drop to an extreme oversold level at $0.2197, approximately 17% below the current level.
READ MORE: Bitcoin Price Prediction: Murrey Math Lines Show Next Target
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