Summary
The Pi Coin of Pi Network has experienced a significant drop in price, falling to $0.803. This decline comes despite the announcement of a $100 million investment fund aimed at supporting startups through Pi Network Ventures. Investors are growing increasingly wary due to bearish market indicators and concerns over project selection within the fund.
Pi Coin Hits Low After $100 Million Fund Launch
Despite the launch of the $100 million Pi Network Ventures fund, Pi Coin has seen its price plunge to $0.803, marking a 10% decline over the last 24 hours. The fund, which aims to invest in startups to enhance the practical utility of the Pi currency, was initially met with optimism. However, the market quickly turned bearish, with Pi Coin dropping from a recent peak of $1.65.
This sharp decrease suggests a classic “sell the news” reaction, corroborated by technical indicators pointing to potential further losses.
Launch of Pi Network Ventures
On May 14, Pi Network introduced Pi Network Ventures, committing $100 million to foster innovation among startups. The fund, backed by both Pi and USD, is designed to target companies that can improve the real-world functionality of Pi. Initiatives include supporting startups in areas like AI, FinTech, and e-commerce to integrate Pi into their operations.
The initiative draws from a reserve of 10% of the Pi Foundation’s tokens and aims to transform Pi into a widely adopted cryptocurrency. However, the lack of clarity regarding project selection has left some investors frustrated, leading to a negative market sentiment following the announcement.
The fund’s scope extends beyond blockchain technology, mirroring venture capital strategies prevalent in Silicon Valley, and targeting a broad range of tech sectors. Ultimately, it seeks to strengthen the Pi ecosystem for its 19 million KYC-verified users.
Nevertheless, despite these ambitious goals, the announcement failed to sustain positive momentum, with Pi Coin experiencing a steep 26.2% drop within 24 hours of the news. Complaints from the community regarding sluggish migration processes after the mainnet launch have further exacerbated selling pressures.
Despite the immediate market reactions, the initiative does provide startups with access to a global user base across more than 200 countries, potentially paving the way for long-term adoption.
Price Prediction for Pi Coin
As of press time, Pi Coin is trading at $0.803, reflecting a 10.6% decrease over the last day according to Coingecko. Notably, the price has breached the critical psychological support level of $1.00.
Technical analysis reveals a bearish flag pattern on the 2-hour chart, indicating potential further declines to $0.75 or even $0.57. The 21-period EMA has dipped below the 50-day and 200-period EMAs, reinforcing bearish signals.
However, the Relative Strength Index (RSI) suggests oversold conditions, hinting at intense selling pressure. A bullish market reversal could push Pi Coin back up to $1.25, aligning with the 0.618 Fibonacci level.
Despite recent losses, Pi Coin remains 11.8% higher than its price a week ago, although it is still 73.1% below its all-time high of $2.99 logged in February 2025.
Additionally, trading volume surged by 11%, representing 14% of the market cap of $5.75 billion. This increase highlights the market’s response to the Ventures announcement. Moving forward, failure to reclaim the $1 mark may intensify bearish dynamics, while a broader cryptocurrency market rally could support Pi’s recovery. Traders should particularly watch the 50-day and 200-day EMAs as key resistance levels.
Overall, the short-term outlook for Pi Coin hinges on market sentiment and the evolution of the project’s ecosystem.
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