Pi Network Encounters Challenges Despite Transition to AI and Directory Staking
The Pi Network price has been under continuous pressure over the weekend, even in light of major announcements from management on Pi Day 2.
Pi Coin (PI) has dropped to $0.532, marking a 20% decrease from its peak last week and a 68% decline from its high in May. This downturn has brought its market capitalization down to around $4 billion.
During the Pi Day announcement, the developers introduced the launch of an artificial intelligence initiative, hoping that developers will leverage the Pi App Studio platform to build AI-driven applications.
The developers emphasized key advantages, including the native Know Your Customer mechanism, which has successfully transitioned over 13.7 million users from the enclosed mainnet to the public mainnet.
They also pointed out their large community, which consists of over 60 million users across more than 200 countries. Additional features aimed at empowering developers include the Pi Ad Network, .pi Domains, and the Pi Wallet.
The developers of Pi Network have also unveiled ecosystem directory staking, a new platform-level utility crafted to assist pioneers and businesses in enhancing the ranking of Pi apps on the ecosystem interface.
This feature allows pioneers and businesses to stake their Pi on the mainnet blockchain, potentially improving their rankings, which can lead to increased interactions and greater sales opportunities.
On Pi Day 2, Pi Network announced further updates including the integration of the Pi Wallet with Onramper, an on-ramp aggregator designed to streamline on-ramp services for pioneers. They also rolled out Node Version 0.5.2, which improves security and updates its application to Pi Desktop.
Following these updates, the Pi Network price fell, likely due to three key factors. First, many analysts and traders had already anticipated significant announcements for Pi Day 2. Second, the announcements did not include any new exchange listings. Finally, ongoing issues like token unlocks and centralization remain unresolved.
Pi Network Price Technical Analysis
Technical indicators suggest a potential rebound in the Pi Coin price in the forthcoming weeks. The 12-hour chart displays a double-bottom pattern formed at $0.3976, with a neckline at $1.6695, which signifies its peak in May.
Furthermore, Pi has developed a falling wedge pattern characterized by two declining and converging trendlines. It has already crossed the upper limit of this pattern and is currently undergoing a retest. A break-and-retest pattern is frequently viewed as a continuation signal.
As a result, a bullish breakout for the token is anticipated soon, with the next target set at the psychological milestone of $1.