The recent uptick in Pi Coin‘s price could be misleading according to several market experts. Although many investors interpret the rise as a sign of recovery, technical and fundamental analyses point to a possible significant decline in the short term. This scenario could severely affect retail investors and market liquidity.
Factors that threaten Pi Coin’s price
The main concern centers on upcoming token releases that will increase the supply available in the market. According to analyst Dr. Altcoin, this supply increase could exceed real demand and push the price down, with estimated declines between 35% and 50%. The combination of a low-liquidity market and reduced volumes creates perfect conditions for rapid collapses and hinders potential recoveries.
Technical data reinforce this negative outlook. Pi Coin has failed to surpass the 20-day EMA ($0.3548) and is trading below the 50-day EMA ($0.3900) and the 100-day EMA ($0.4883). The RSI remains at 45.47, a technically neutral level but one that reflects some selling pressure. These technical indicators show a lack of confidence among buyers and a high probability of pullbacks if sellers take control of the market.
Implications for investors and the market
This situation generates several consequences for market participants:
- Greater potential volatility due to supply spikes that low liquidity will not be able to absorb
- High risk for retail investors in the face of possible 35–50% declines
- Warning signs for exchanges and market makers, who will need to monitor key technical levels
Despite the negative outlook, some market participants, including Dr. Altcoin, plan to increase their positions despite the risk, possibly hoping to take advantage of lower prices. Investors should closely monitor token release events and the EMA levels mentioned to properly assess risks before making buy decisions.
