Pi Network’s PI Token Drops 45% to $0.86 Despite $100M Fund Launch

Pi Network’s native token PI has fallen to $0.86 as of May 16, down 45% from last week’s high of $1.57. The drop follows the Pi Foundation’s announcement of a $100 million venture fund to support projects in AI, fintech, gaming, and e-commerce. Traders were expecting a major exchange listing, so this is a classic “sell the news” reaction.

PI is still 71% below its February high of $2.99. No listing and broader liquidity concerns are weighing on sentiment.

Technical Analysis: PI at Make-or-Break Support

PI/USDT just broke below $0.89 support and is now at 50-day EMA at $0.86, a key level for bulls. The chart shows a textbook Fibonacci retracement, with $0.80 (Fib 0.786) as the next support. A break below could open up to $0.57 and $0.40.

A bearish engulfing candle at $1.25 (Fib 0.382) and fading MACD momentum is bearish short-term. For a bullish setup, look for a strong reversal candle above $0.99, with targets at $1.12 and $1.25. But a close below $0.80 may trigger a move down.

Key Catalysts Ahead

• Consensus 2025: Founder Dr. Nicolas Kokkalis will unveil decentralization plans.

• Core node deactivation: Signals decentralization progress.

• Exchange listing rumors: Binance wallet activity is sparking speculation.

• Tokenomics risk: 1.47 billion tokens will unlock in 12 months and people are calling for a token burn to reduce supply.

If Pi Network delivers on decentralization and listings, PI may bounce back to $1.12. If not, it may go to $0.75 or lower.