Pi Network Hits Record Low as Market Sentiment Turns Bearish
As sentiment in the cryptocurrency market worsens and inflows into the Valor Pi exchange-traded product decline, the price of the Pi Network is lingering close to its all-time low. On Monday, Pi Coin fell to a record low of $0.1900 before marginally increasing to its current $0.2698. This price is roughly 90.97% lower than its peak.
Three Reasons Valour Pi Fund Has Failed to Boost Pi Network
Due to the recently announced Valour Pi Fund‘s poor asset growth, one of the Pi Network’s leading catalysts has backfired. The fund’s website states that its assets total just SEK 32,075—roughly $3,400. These assets were bought one month following their Swedish start. Three factors could be to blame for the fund’s lack of success:
- First off, with a 1.9% management charge, it is an extremely costly investment. On the other hand, well-known cryptocurrency exchange-traded funds have fees that are less than 0.25%.
- Second, the fund was introduced by Valor during a sideways movement in the Pi Network price. Crypto ETFs typically increase their assets when the tokens are rising.
- Third, there hasn’t been a significant trigger for Pi Network in a few months. To compensate for the continuous unlocks, the developers have not revealed any significant integrations or token burning. Since the introduction of its mainnet, no cryptocurrency exchange has listed the token.
Pi Coin Breakthrough Signals Risk and Opportunity for Traders
The Pi Coin price stayed inside a narrow range for months, as the daily timescale chart demonstrates. Then, as the cryptocurrency market plummeted this week, it produced a powerful bearish breakthrough. The volume has decreased, and the currency is still below all moving averages. Positively, there may be further upside if this drop turns out to be a shakeout. A shakeout is a sharp drop that frequently comes before an asset’s recovery. The coin might rise back to $0.4582, the biggest swing on August 10, if this occurs.
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