The cryptocurrency markets have started to retreat again this week, and yesterday’s brief pump-and-dump only intensified the pressure on most altcoins.
However, Pi Network’s native token is among the few alts that have managed to defy the overall correction and sits above $0.20. Interestingly, this is not the first time this has happened in the past few months.
PI to Defy This Correction, too?
October and November were quite brutal for the broader cryptocurrency market. In times when BTC and ETH were charting double-digit weekly (and on a few occasions, daily) losses, though, PI managed to defy the overall crash and soared from $0.20 to almost $0.30.
However, the landscape around Pi Network’s native coin started to worsen in early December when the rest of the market rebounded. As BTC challenged and exceeded $90,000, PI dropped below $0.25 and under $0.20 earlier this week.
The past 24 hours have been different once again. As reported earlier today, many altcoins have posted notable price declines, with LEO, HYPE, and PUMP leading the pack south. However, PI and a few others have shown impressive resistance, and the asset has bounced above $0.20.
This begs the question of whether PI has the ability to be a hedge against crypto market corrections. But also, whether it fails to produce impressive gains when the rest of its altcoin cohort is surging.
What Could Drive PI Forward?
One of the main drivers behind PI’s October-November defiance was the continued updates from the team in regards to the overall ecosystem growth. However, what seems to be impacting the token the most is actually rumors and speculations.
Its price has recorded the most significant gains (and subsequent crashes) after someone with status hinted that big news is coming. Months ago, it was a potential listing on Binance, which never materialized.
Then, there were rumors about some new development, which sent PI flying, but once it was announced, a $100 million Pi Network Ventures fund, it led to a violent correction. It’s worth noting that despite each pump following some speculation, the subsequent rejection and price drop are much harsher, and PI tends to underperform in the long run.
After all, it has plunged by more than 93% since its all-time high in late February, and every rebound appears like a dead-cat bounce on the higher timeframes.
The post Is Pi Network’s PI Set to Benefit From the Current Market Dip? Here’s What It Means appeared first on CryptoPotato.