Although most of the cryptocurrency market is slightly in the red over the past 24 hours, some assets, such as Pi Network’s native token, have taken the retracement much worse than the rest.
What’s particularly worrying about PI’s performance is that it halted its rather impressive resurgence after the recent all-time lows, begging the question whether a new bottom is on the horizon.
Another Failed Attempt
July has been quite painful for the popular yet controversial token. It charted several consecutive ATLs, especially after it broke below the coveted $0.10 support. The latest record low came in the middle of the month when it tanked to just over $0.07.
This support level, though, finally provided the necessary help for the asset to rebound in the following days. At one point, PI became the market’s top performer, surging by 20% and challenging the same $0.10 level, but this time from the downside.
After several hours of trying to break through, the bears emerged victorious and halted its move north. In the following days, PI kept losing traction but gradually and managed to maintain above $0.09 for the most part. However, another breakdown has materialized in the past 24 hours as the token has slumped by more than 10% and now sits at around $0.082.
As such, PI continues to perform in a similar but very painful manner; it remains stable for a few months, then slumps hard to new record lows, bounces by double digits within days, only to be rejected again and chart a new lower low. This pattern has been observed for over a year now, and leads to new ATLs almost every time.
Same Problems
The fundamentals behind the project haven’t changed all that much, especially for the worse. The Core Team continues to announce new updates, protocol upgrades, product redesigns, and everything in between, but the effect is brief. Investors appear to have lost confidence, and the daily token unlocks rarely help.
From a technical perspective, $0.10 remains the key obstacle before a more profound recovery. Unless PI is able to reclaim that level soon, its situation could rapidly worsen, as we have seen it happen many times in the past year. If the $0.07 ATL support gives in, PI would enter another phase of price discovery with no historical support levels below.
If that happens, PI risks falling out of the top 100 alts by market cap. It has already gone down that ranking from the top 50 to outside the top 70 in just a few weeks.
Source: CryptoPotato
