Pi Network holders sell at a loss as price nears all-time low of $0.40

The Chaikin Money Flow for Pi Coin has dropped sharply below zero, signaling that capital outflows are outweighing inflows, according to cryptocurrency news site BeinCrypto. CMF is a technical analysis tool used to gauge capital movement over a set period.

Pi's overall momentum also remains weak as its Relative Strength Index has dipped slightly, pointing to rising selling pressure and limited buying interest among traders. "This decline signals that Pi Coin holders are actively withdrawing their holdings to prevent further losses," BeinCrypto said.

"The CMF has hit a monthly low, showing that the sentiment towards Pi Coin is turning bearish. The outflow signals a lack of conviction among investors, who are pulling their funds from Pi Coin amidst growing concerns about the altcoin's future.

"If this trend continues, it could further exacerbate Pi Coin’s price decline, potentially leading to new lows," the news site said.

The report added that if Pi's price breaks above the US$0.49 resistance level, it could rebound slightly to around $0.52. However, slipping below $0.45 in the coming days could trigger another drop. The altcoin is just 14.8% away from hitting its all-time low of $0.40. Analysts warn that a price surge is "unlikely unless a significant shift in market sentiment occurs."

Pi price shown on a phone with Pi logo in the background. Photo by VnExpress/Duy Phong

Data from Binance shows Pi Network's total supply stands at 100 billion coins, with nearly 7.7 billion currently in circulation, a sharp rise from 6.9 billion in mid-May. The token has seen steep losses, falling 25% over the past 30 days and 49% in 60 days.

"I spent $5,000 on Pi tokens in early June at $0.60, thinking it was a bargain since it had previously dropped to $0.40 and later surged to $1.60," Minh Hoang, an investor in Ho Chi Minh City, said. "But now my investment is worth just over $3,700. I had to cut my losses after seeing a 25% drop."

Hoang, who has been in the crypto market for three years, said he did not use Pi's daily check-in app but believed the network's large community would drive up the token's price. However, since his purchase, Pi has steadily declined, at times slipping to $0.39 before rebounding slightly to $0.46.

Even during Bitcoin's record-breaking rally, Pi only reached $0.52 before falling back.

Van Thanh of southern Tay Ninh Province shared a similar story, saying he was "on edge for days" before selling his $10,000 Pi investment at a loss.

"I thought Pi would recover after a long slump, so I bought in mid-May at $1.20 per token. But I had to sell at around $0.60 earlier this month to pay off debts."

Pi Network officially launched trading on several crypto exchanges in February, allowing participants to buy and sell tokens like other cryptocurrencies. In Pi community groups, many users are now debating whether to hold or sell as prices continue to fall.

"Unlike meme coins that often ride Bitcoin's waves, Pi has stayed largely flat even as Bitcoin hit record highs," The Kha, a crypto trader with seven years' experience, said. "Plus, millions of tokens are released daily, so the price drop is not surprising."

Launched in 2019 Pi Network promoted itself as a way for users to mine the crypto for free by tapping a button in its mobile app daily. Vietnam is among the countries with the most miners. The project has been controversial, taking nearly six years to launch its mainnet before finally allowing users to transfer Pi to exchanges for trading on Feb. 20 this year.

But the project is still viewed as an incomplete blockchain initiative, lacking smart contract functionality and open-source transparency. To date the development team has only introduced limited updates, including a domain name auction feature, the PiFest shopping campaign and a few small-scale applications.

On Pi Day, June 28, the project launched a "staking" feature, but users mistakenly believed it was a savings plan, locking their tokens for a year with no option to withdraw or cancel. It has also faced criticism for frustrating users with slow progress on promised ecosystem improvements.