Pi Coin Faces Obstacles Amid the Popularity of Stablecoin: What Will Happen Next with Pi Network?

Pi Coin continues to fall today, dropping below the brief resistance level of $0.50. A well-known trader and market expert has stated that the surging popularity of stablecoins is one of the main challenges affecting the appeal of PI to traders. Meanwhile, this ongoing chaotic movement has also sparked discussions among investors, with many predicting that the cryptocurrency will fall below the all-time low of $0.4012. However, a leading market expert has dismissed the claim that the price of Pi Network will hit a new low, citing key reasons. The price of Pi Coin falls when the price of cryptocurrency falls. The price of Pi Network today fell by more than 3% and is trading at $0.4908, while the trading volume decreased by more than 1% to $92.6 million. Notably, this cryptocurrency has fluctuated between $0.5142 and $0.4834 in the past 24 hours. On the other hand, the Future Open Interest of Pi Network continues to fall, indicating that the risk appetite of investors is gradually decreasing. However, it is noteworthy that the recent price drop occurs against the backdrop of a broader sell-off in the cryptocurrency market. As of the time of writing, the global cryptocurrency market capitalization has fallen by approximately 0.6% to $3.29 trillion. The price of Bitcoin has decreased by about 0.3% while the leading altcoin, Ethereum, has dropped by around 0.5%. Meanwhile, the relative strength index (RSI) of Pi Coin remains at 35, indicating that this cryptocurrency is approaching an oversold condition. However, this cryptocurrency may witness a comeback in the near future.

To better understand, the overselling condition of the asset helps investors participate in the market at a lower price. Therefore, investors can bet at a lower price, which can help a strong recovery for the price of Pi Coin. The popularity of Stablecoin affects the development of Pi Network Pi Coin is facing significant challenges amid a surge in global demand for stablecoins. According to renowned trader and analyst Kim H Wong, the popularity of stablecoins threatens Pi Coin's goal of becoming a widely accepted cryptocurrency globally. Stablecoin, pegged to assets like fiat currencies or commodities, provides price stability, broad applicability, regulatory compliance, and diverse use cases. These features go beyond the current capabilities of Pi, the analyst noted. The volatility, limited liquidity, and regulatory uncertainty of Pi Coin hinder its competitiveness against stablecoins. Additionally, the passage of the U.S. stablecoin legislation, the GENIUS Act, through the Senate has further bolstered market confidence in stablecoins. However, Wong noted that despite these challenges, Pi Network has unique strengths that can reduce the impact of stablecoins. Pi's mobile device-first mining model, which only requires tapping the app daily, helps lower the barriers to entry compared to stablecoins. On the other hand, the 65 million users of the network and the referral-based model create a loyal base that can drive adoption if practical utility is improved. Additionally, Pi's focus on decentralized applications (dApp) and developer platforms can promote innovative use cases, competing with stablecoin applications. Meanwhile, analysts suggest that the recent release of Pi App Studio with AI, which facilitates easier app development, could be a turning point for the network. An ecosystem with many useful applications could retain current users in the Pi blockchain and attract new users. Can the price of Pi Coin fall below $0.4? As the price of Pi Coin continues to fall below $0.5, many are weighing the risks as this cryptocurrency hits a new all-time low. However, a market analyst has dismissed concerns about Pi hitting new lows, outlining the main reasons. The analyst cited that the Pi Core Team holds 90% of the total funds of Pi Network. He noted that this team is "smart enough to prevent the price from falling below $0.4." He stated that falling below the $0.4 level could push Pi's market capitalization ranking out of the top 30. If that happens, the appeal of cryptocurrency may fall for investors, while many may see this as a riskier asset. However, experts note that the Pi Core Team "will likely do their best" to keep the project's value above $0.4.

Considering this, it seems that cryptocurrency may witness a strong comeback in the future. However, investors should exercise caution in the context of the ongoing volatility in the cryptocurrency market overall.