Crypto Volatility Sends Pi Coin Plunging

1. Pi Coin Price Drops Amid Sell-Off

On July 1st, Pi Coin's price dropped over 3%, trading around $0.4908, below the temporary resistance level of $0.50. Trading volume also decreased by more than 1%, indicating investor profit-taking sentiment. The current RSI is 35, signaling an oversold condition, which might present a buying opportunity for some investors.

2. Stablecoins Overshadowing Pi Coin

According to expert Kim H Wong, the rapid rise of stablecoins poses the biggest challenge to Pi Coin currently. Stablecoins offer advantages such as price stability, regulatory compliance, and practical applications, outperforming volatile and less liquid coins like Pi. The recently passed GENIUS Act on stablecoins in the U.S. Senate further strengthens confidence in this asset class.

3. Will Pi Drop Below $0.4?

While many fear Pi might break its historical low of $0.4012, an expert notes that the Pi Core Team holds up to 90% of the issued coins, giving them the ability to prevent the price from falling too low. Dropping below $0.4 could push Pi out of the top 30 by market capitalization, negatively impacting its image and market confidence.

4. Conclusion

The rise of stablecoins is putting pressure on Pi Coin, leading to price declines and fluctuating investor sentiment. However, with a large user community and plans to develop its ecosystem, Pi still has a chance to recover if it leverages its strengths effectively.