Pi Network’s (PI) Rally Comes to an End With Massive 10% Daily Drop

Perhaps driven by some of the positive developments within its ecosystem, Pi Network’s native token defied the overall market sluggishness over the past several days and posted some impressive gains.

However, it all came to a screeching halt as the bears reemerged and pushed it south hard.

PI Plummets

The Core Team behind the project has announced some major protocol changes in the past few months, which upgraded it from v19.6 to v21 by mid-March. The subsequent one, version 22, is also rumored to be deployed, but there’s no official confirmation from the team yet.

In addition, they have made strides in different directions, such as AI and verifications. In fact, as reported yesterday, they managed to combine AI and human input to complete over 526 million verification tasks.

These are among the likely reasons behind the native token’s impressive performance by yesterday. Its rally began from $0.17, where it traded by April 26, before it skyrocketed to $0.20 by April 29. This became its highest price tag in over a month and prompted some analysts to speculate about an even more profound pump that could drive it north by 1,400%.

However, the $0.20 resistance was too strong, and the subsequent rejection has been quite brutal. PI first retreated to $0.19 before it nosedived again to just over $0.17. It found some support there and now trades above $0.175. Nevertheless, its daily losses are still over 10%, and its market cap has plunged to $1.830 billion.

Perfect Setup for Long Liquidations

Popular X user Dao World weighed in on PI’s latest rejection, noting that the $0.20 resistance is where the 200-day MA is located. The retracement drove it south to the 100-day MA, which serves as the first major support.

They explained that the number of high-leveraged long positions had started to build up during the rally, which “made it a perfect setup for a long liquidation.”

The other factor that could have contributed to the correction was the overall market state. As reported yesterday, bitcoin and most altcoins dumped after the FOMC meeting, in which the Federal Reserve maintained the key interest rates unchanged.

Nevertheless, Dao World reassured the PI community that the asset had not dropped below the 100-day MA, which could result in a more impressive rebound if market sentiment improves.

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