Key Insights:
- Pi token breaks down from key support zone, with next target near $0.37.
- Users face password leak risks as PiChain issues urgent security warning.
- Community frustration grows as core features and updates remain delayed.
Pi Network is under increasing pressure on all fronts with token value declining, ecosystem momentum grinding to a halt, and password leaks causing security warnings.
The market mood has become risk-averse, with PiUSD experiencing additional collapse. The project is now being hit by technical indicators, user backlash and development issues.
Pi Network price action signals prolonged downtrend as resistance remains firm
The PiUSD chart still indicates a continued downward pressure as the token is trading around the price of 0.54. The price is trapped beneath downward resistance trend, which indicates an extended bearish formation.
The inability to move above the Ichimoku cloud in the recent past further undermined the bullish sentiment.
Additionally, the MACD indicates a bearish cross, and this indicates a downward shift in momentum. There is no sign of short-term recovery unless a substantial buying volume returns.
The levels of interest are $0.52 and $0.48. In case they cannot be maintained, further decline towards the anticipated $0.37 level can be expected in the next sessions.
Security Breach Raises User Protection Concerns
PiChain Global sent out a warning to the general population regarding the leaked Pi account passwords that may result in unauthorized access to assets.
It was recommended that users should secure their email and full identity verification using the PCM Wallet to avoid hacking of their account. The alert is after malicious log-in attempts were reported using the Pi Browser.
The members of the community were advised not to merge accounts after installing the wallet and to provide KYC information. Account recovery requires a verified email, profile screenshot, and government-issued ID. PiChain assured timely responses to assist in protecting user funds under the threat.
This is the most recent security breach to hit user confidence. Although it was small-scale, the leak shows the weakness in account protection procedures. The platform encouraged users to not be tricked by phishing links and to apply multi-factor security when possible.
Security Breach Raises User Protection Concerns
In spite of the .pi domain auction app, the Pi Core Team was criticized because of the narrow range of recent changes. Users wanted to see more advancement such as listings, smart contract capability and KYC simplification. It is believed that the project is paying too much attention to the non-essential features, and the essential tools are not developed enough.
More than 3 million Pi tokens have been auctioned, although the participation is not high in comparison with the daily token activity. Companies have not been keen on purchasing branded names. There are still only six verified KYB companies, and no large enterprise integrations have been verified.
Pi Ventures fund, which was launched last month with a capital of 100 million dollars, has not made any investment announcements so far.
In the meantime, more than 248 million Pi tokens will unlock in July, which causes concerns about the rise of sell pressure. The absence of new exchange listings and little deployment of applications add to these concerns.
Development Activity Lags as Ecosystem Frustrations Mount
Although Pi Network boasts of the biggest confirmed user base in crypto history, it still has problems with product delivery. The Open Network was launched in February with the promises of free blockchain activity.
Nonetheless, utility is still minimal, and the growth of the app ecosystem has stagnated post-launch.
Advocates highlight the vision of Pi to provide the unbanked and create a human-centered crypto economy. Nevertheless, technical failures, slow integrations and market losses are threatening this vision. The crypto community still demands more clarity on the future and product schedules.
The Pi2Day event is key to seeing what major announcements are made. Unless new developments or partnerships are announced, sentiment may deteriorate further.
At the current stage, the short-term perspective of Pi Network relies on whether it will be able to provide valuable updates and restore trust.
Mixed Sentiment as Community Awaits Clear Roadmap
As Pi Network fails, Ethereum is gaining popularity in comparison to Bitcoin. The ETHBTC pair is also building a bull pennant pattern, which is an indication of a possible breakout.
An established breakout may initiate capital rotation to altcoins, which may enhance the sentiment in the sector.
In case Ethereum gains strength and goes into price discovery, smaller tokens such as Pi can gain indirectly. Nevertheless, the capacity of Pi to capture upside is constrained by internal issues.
Wider altseason dynamics may offer a short-term boost, but long-term profits will only come with actual product development.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
The post Pi Network Faces Pressure as Price Weakens Amid Security Concerns appeared first on The Market Periodical.
