The native token of Pi Network, PI, also plummeted by more than 32% in the last 24 hours, and was trading at $0.8768 at press time. The decline occurred despite the announcement of a major development by the Pi Foundation – a $100 million venture fund.
On May 14, Pi Foundation announced a new fund, Pi Network Ventures, which is intended to support startups, which create real-world applications and promote PI adoption. The fund will support companies in the generative AI, gaming, FinTech, e-commerce, social media, and blockchain space, just like a Silicon Valley VC firm.
Despite the big news, the market response was negative. PI fell from a high of $1.30 a day to a low of $0.8183 and stabilized at $0.87. Many traders were probably anticipating a big exchange listing, which would provide liquidity and price discovery. Without it, the announcement could have left a sense of underwhelming – prompting a classic “sell the news” move.
Technically, PI is still a bit strong. It transacts above important moving averages such as the 50-day SMA and 10-day EMA, which are bullish indications. The RSI is at the neutral level of 57.24, while the MACD suggests the short-term upside.
If PI stays above $0.85, it may bounce back to $1.10. However, if it goes below, then a retest of $0.74 support is possible.
For the moment, investors appear to be rethinking their positions. As short-term traders leave, the Pi Network keeps on building, betting on the long-term growth by real-world adoption.
Also Read: Pi Coin Enters Top 20 Crypto Ranking on CoinMarketCap
