Weak Volume Pushes Pi Below $1 Despite Market Cap Growth

• Pi dropped from $1.73 to $0.73 as buyers left and market activity slowed down fast.
• It failed to hold above $1 because resistance levels were strong and volume stayed low.
• The supply in the market is too high compared to how many tokens are actually moving.
  

Pi Network (PI) is trading at $0.7355, as of press time, after a steep 57% decline from its May 12 high of $1.73. Despite gaining 14.75% over the past month, the significant drop in trading volume, weakening technical momentum, and overwhelming resistance levels converged to break the critical $1 support. 

Source: Tradingview

Breakdown Triggered by Volume Crash and Technical Rejection

Resistance against Pi began at the price of $1.6699, the exact point of the 1.0 Fibonacci extension level. It was achieved after a surge of 319% which translates to an appreciation of $0.3980. But the rise in the prices soon slowed down. The first and third Fibonacci levels, at $1.3977 and $1.1840, quickly stopped the coin’s upward movement.

As Pi slipped below $1.0339, which marks the 0.5 Fibonacci level, bearish pressure intensified. The price plummeted through several support zones with little resistance from buyers. This sharp decline occurred amid falling enthusiasm and limited trading interest.

Moreover, daily trading volume plunged 40.62%, now sitting at $174.47 million. Liquidity dried up, and the volume-to-market cap ratio weakened to 3.29%, showing less money entering the market. These volume dynamics reflected fading investor participation after the brief bullish surge.

Market Metrics Reveal Structural Weakness in Rally

Pi’s market cap currently stands at $5.29 billion, but its fully diluted valuation is an outsized $73.55 billion. This disparity is due to a 100 billion token max supply. Only 7.19 billion tokens are in circulation, representing 7.19% of the total, which artificially inflates scarcity and misguides price action in thin markets.

Source: Tradingview

Technical support at $0.8513, previously observed in April, has now failed. The Relative Strength Index (RSI) has dropped from overbought levels above 80 to 48.46. Its 14-day moving average rests at 58.61. This RSI shift reflects a neutral-to-bearish sentiment, with no strong momentum pushing the price higher. Besides, price action has formed a descending pattern from the parabolic peak. Repeated failures to hold above $0.8383 reinforce this bearish shift. 

Related: Ethereum Holds Above $2,400 as Whales Fuel Bullish Momentum

Was Pi’s $1 Price Ever Sustainable?

The Pi coin has led spectators to question that if the surge above $1 is caused by mere excitement or underlying fundamentals. The trend in prices during this period follows the classic parabolic curve, making the price increase unsustainable. This quickly turned into a descending channel when momentum faded.

Hence, without an increase in volume and structural demand, reclaiming the $1.03 resistance remains improbable. It is likely that the $0.50 support will be tested again soon. A strong exodus of major investors when prices reached new highs was one factor that led to the drop. Thus, Pi could not keep its value at $1 for the reasons outlined above. The financial system collapsed due to reduced volume, weak structure, and overly high expectations in the market.

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