Don't panic: Why the price of Pi is falling and why it will continue to trend down

In recent times, the Pi has experienced many sharp fluctuations in the market. While significant price drops may confuse many investors, there are fundamentals and market strategies that suggest this trend is not a surprise. Here is a detailed breakdown of the reasons for the decline and why we may see more corrections in the near future.

1. The dilution of the Pi coin due to a spike in coin supply One of the main reasons is the addition of more than 18 million new Pi coins to the market in March. This causes a phenomenon of "dilution" when the volume of coins increases suddenly, especially if these coins are traded in short periods. When the volume of transactions suddenly increases, the selling pressure also increases, leading to a rapid decline in prices. If you look at the trading volume during price drops, you will realize a clear connection between the amount of coins released and the price drop.
2. The sell-off effect in the context of panic Not only dilution, (panic selling) sell-off is also taking place strongly. Many investors, when they feel worried about the market situation, decide to sell to take profits or cut losses. Meanwhile, experienced traders take advantage of this opportunity to buy at a discounted price. However, the sell-off rate outstripped the buying volume created great pressure, making the price not have enough "gas" to return to growth immediately.
3. Huge trading volume after the launch of Open Network After the Open Network launch event, Pi's trading volume once exceeded the $1 billion mark on multiple days. The network's pioneering investors made a massive sell-off, triggering a price shock when the Pi fell to around $0.6. Although there have been subsequent recoveries, the price has reached the level of $3, but this is only a signal that the market is capable of a strong correction. When the dilution process is complete, the KYC period ends, and unverified coins are removed from the system, we may see a more stable recovery, opening up opportunities for trading listings on major exchanges.
4. Future outlook: Recovery from the correction period In the current period, it is likely that the Pi price will temporarily fall below the $1 level due to selling pressure and continuous dilution. However, this is also an opportunity for the market to adjust naturally. When the negative elements are eliminated and the transparency of the system is strengthened, we can see a strong recovery. A stable recovery will help open the door for listings on reputable exchanges, creating more bullish momentum in the future. Conclusion: Consider and invest carefully The current volatility shows that, despite the pressure from the increase in the supply of coins and the sell-off due to panic, the market always has a chance to recover when the necessary adjustments are completed. It is important for each investor to do their own research, risk assessment and closely monitor market developments. Don't panic when the price drops – it can be a buying opportunity for those who have the foresight and long-term investment strategy. Trade with caution and always remember that the cryptocurrency market always fluctuates according to its own rules.