The Pi Network, a popular blockchain-based cryptocurrency project, has had a turbulent year. After facing many delays and frustrating its community for years, it finally launched earlier this year in the first quarter (Q1). Along with the launch, its native token, PI, became available for trading.
At first, PI performed very well. Its price quickly increased, reaching several new highs. By late February, it peaked at nearly $3.00. However, this excitement didn’t last long. Soon after, the value of PI started to drop. It entered what is known as a ‘bear market,’ where prices keep falling and investors feel pessimistic. Learn more about bear markets. By October, PI had hit its lowest price ever, dropping to $0.172. Overall, it lost more than 94% of its value during this time.
Fortunately, PI rebounded a bit after the project team shared updates and some good news. It climbed back above $0.20 in the past couple of months. This $0.20 level has become an important ‘support’ area for the token’s price, meaning it serves as a key floor that prevents the price from falling further. Learn more about support levels in finance.
Even with uncertainty affecting the overall cryptocurrency market, PI has managed to stay above $0.20. However, the big question is: can this support level hold as the year comes to an end?
Can PI Recover or Will It Break Down?
To understand what might happen with PI, experts used artificial intelligence tools like ChatGPT to predict its future. According to ChatGPT, while PI’s price seems somewhat stable now, the token’s structure is still weak compared to larger altcoins. (Altcoins are cryptocurrencies other than Bitcoin. Learn more about altcoins.)
ChatGPT explained that the $0.20 level has acted as a survival zone for PI. Every time its price approached this level, buyers have stepped in to keep it from falling further. However, if a bigger market-wide price drop occurs and PI breaks below $0.20, it risks falling back to its all-time low of $0.172.
On the other hand, if PI’s buyers become more active like they did in late October and November, it could rise to the next resistance level of $0.22-$0.24. A ‘resistance level’ is the opposite of a support level, where the price tends to face challenges rising above.
Risks From Low Trading Volume
Other AI tools, such as Gemini and Perplexity, shared different predictions, and they were less optimistic. They pointed to the declining trading volume for PI as a big concern. Trading volume measures how much of the token is being bought and sold. When this is low, it’s harder for the price to rise significantly.
Repeatedly testing the $0.20 support area might also weaken it over time. If other major tokens like Bitcoin (What is Bitcoin?) and altcoins face sell-offs at the end of the year, PI could also break down further.
If PI loses its support at $0.20, it could fall below its October low of $0.172. This “nosedive” scenario is a possibility if the market remains uncertain.
Final Thoughts
The conclusion from these AI tools is that PI has survived recent market challenges better than expected. But its resilience is being tested once again. The $0.20 price level is crucial for determining how PI will end the year.
If it manages to stay above $0.20, there may be a slight recovery during the holiday season. But if this support level collapses, PI’s price could drop back to $0.172 or lower.
The post originally appeared on CryptoPotato.