Pi Coin price has taken a sharp hit, plunging 19% in the past 24 hours to trade at $0.6030. This sudden drop has erased the recent gains and brought back the worry on the faces of investors especially when the daily trading volume crossed $338 million.
Just few days ago, Pi Coin was on the rise from $0.57 to almost $0.77 before coming back to $0.60. However, the recent drop has taken the price to a very sensitive level of $0.60, which is a critical level. If this level is broken, a further decline to $0.58 or even lower is possible.
However, the concept of mobile mining has not been able to save Pi from pressure due to its large supply chain. The circulating supply is approximately 6.88 billion tokens, while the total is 100 billion, which leads to inflation and long-term dilution of value.
Its market cap, that was once touched the $20 billion mark, is now at $4.14 billion. The market cap seems to be declining, and the investor confidence seems to be diminishing, as it is the case with most altcoins.
Exacerbating the situation, there are fake social media accounts that associate Pi Coin with celebrities such as Elon Musk. Although such posts may create hype, they contribute to pump-and-dump schemes instead of long-term development.
At the moment, $PI needs to remain above $0.60 to prevent further decline. A recovery toward $0.70 could change the sentiment but with the market still volatile, the future is still unclear.