Pi Network price has moved sideways in the past two weeks as its demand and liquidity waned.
The token was trading at $0.1750, down by about 40% below the year-to-date high.
It has slipped by over 90% from the all-time high, erasing billions of dollars in value.
It has formed the risky head-and-shoulders pattern, pointing to further downside as its demand wanes.
Pi Network price on edge as demand wanes
The ongoing Pi Network price consolidation is happening as third-party data shows that its demand has faded.
According to CoinMarketCap, the 24-hour volume dropped to just $18 million on Thursday, down from over $90 million in March this year.
Most of the volume is still on OKX, which handled Pi Network tokens worth over $5.4 million.
It is followed by exchanges like Bitget, Gate, and MEXC. Notably, Pi is yet to gain traction on Kraken, which listed it in March this year.
READ MORE: Pi Network price overbought ahead of Kraken listing: will traders sell the news?
Even the biggest Pi Network whale is no longer buying the coin.
Data shows that he has not made any purchase in the last 11 days. He now holds 401 million tokens, currently worth over $69 million.
The waning demand is happening at a time when the supply for Pi is growing.
Data shows that the network will unlock over 200 million tokens this month and 1.6 billion in the next 12 months.
The ongoing Pi consolidation also mirrors that of other coins.
For example, Bitcoin has remained between $65,000 and $70,000 in the past few weeks, while Ethereum is consolidating at the key support at $2,000.
There are signs that investors are staying away from the crypto market as the Iran war continues.
Pi Core Team is working on major initiatives
Still, on the positive side, the developers are working on major developments on the network.
The most notable one is the ongoing network upgrade, which will push it to Version 23 of the Stellar Consensus.
This upgrade has introduced smart contracts to the network, making it possible for developers to build applications in areas like decentralized finance (DeFi) and real-world asset tokenization (RWA).
In a statement on Wednesday, the developers announced that Pi has an RPC server, a major step towards implementing smart contracts.
A Remote Procedure Call (RPC) listens for and processes requests from clients to execute specific procedures on a remote system.
These smart contracts are important as Pi Network recently launched the token launchpad, which is part of the upcoming DEX and automated market maker (AMM) features.
Pi Network is also implementing its second migration, which is enabling verified pioneers to move their tokens to the mainnet and further participate in the ecosystem.
Additionally, the team recently revealed that it will soon launch a KYC-as-a-Service feature, a move that will see it compete more with existing solutions like Humanity Protocol and Worldcoin.
Pi Coin price technical analysis
Pi Network price chart | Source: TradingView
The eight-hour chart shows that the Pi Coin price has dropped sharply in the past few weeks, moving from a high of $0.2978 on March 31 to the current $0.1740.
It has slipped below the 50-period and 100-period moving averages.
A closer look shows that the token has formed a head-and-shoulders pattern and is now hovering slightly along the neckline.
Also, the Relative Strength Index (RSI) has continued falling, while the token is below the 61.8% Fibonacci Retracement level.
Therefore, the token will likely have a strong bearish breakdown in the near term, potentially to the key support level at $0.1500, down by about 15% below the current level.
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