FX168 Financial News (Asia-Pacific) - On Monday (June 16), the Pi Network (PI) token continued its sluggish trend, failing to follow the overall recovery momentum of the cryptocurrency market. Last week, Pi Network announced updates on the .pi domain auction and practical strategies, but this did not boost buying interest. The surge in PI token supply on centralized exchanges (CEX) and the decrease in holdings by the core team’s wallet indicate market turbulence.
The .pi domain auction of Pi Network is gradually gaining traction within its community, but it has also raised questions about its true purpose and development direction.
The project team hopes that people can utilize the newly auctioned .pi domains to connect themselves with applications, small businesses, personal projects, or the architecture within the Pi Network ecosystem, transforming them into truly usable Web3 identities, rather than just a superficial image, truly leading the way.
In the ongoing auction, users have the opportunity to acquire customized .pi domains.
The latest update introduces a new feature—a statistics page available on the domain auction application. This new page provides information on the highest bids, top prices, and the latest popular bids during the auction.
In addition to this update, Pi Network has urged the community to focus on the practicality of such .pi domains. The network labels these domains as "functional Web3 identifiers" to anchor Pi's applications and services.
Despite the increasing community engagement, most activities are driven by domain speculation. Bidders are actively competing for generic domains and brand-related terms, similar to the early Web2 and Ethereum ENS models, raising concerns that most domains are purchased for speculative resale rather than actual development.
The core team of Pi Network has noticed this trend. In a recent blog post, they explicitly stated that .pi domains are not meant to be purchased merely for collection or resale. They indicated that the true purpose of .pi domains is to serve as URLs for actual applications and services built within the Pi Network, such as online stores, blogs, or other tools for people to use.
To drive the project in this direction, Pi Network stated that it is developing tools to make it easier for domain holders to create applications. These tools include builder interfaces, notifications, and simplified integration features. However, these tools are not yet online.
Although the auction reflects a growing interest in Pi Network's digital infrastructure, the project's success will ultimately depend on whether these areas can develop into usable products.
PiScan data shows that in the past 24 hours, the net inflow of Pi tokens on CEX has surged. The increase in CEX reserves indicates a potential increase in supply, which could depress prices if these tokens enter the market.
Data shows that the net inflow of PI tokens on OKX exchange is 904,384, Bitget 186,316, with a total net inflow of 2,458,127 PI tokens across five exchanges, including 1,336,196 PI tokens deposited into Gate.io.
Source: CoinMarketCap
As CEX wallet balances continue to increase, the Pi Foundation's wallet No. 2 has seen a net outflow of 14,820 tokens in the past 24 hours. With the increasing supply about to enter the spot bottom, leading to a decrease in liquidity in the Pi Foundation wallet, the price of PI tokens may experience a correction.
Source: CoinMarketCap
In terms of technical analysis, FXStreet states that the relative strength index (RSI) momentum indicator for PI tokens is at 49, consolidating near the midline and facing strong resistance, consistent with the stagnation of bullish recovery. Although there is still significant upside potential above the midline, the sudden halt in bullish momentum could trigger a reversal.
The moving average convergence/divergence (MACD) indicator is approaching the zero line from a deep negative area. However, the recent decline in the bullish green histogram suggests that the bearish signal line may cross the signal line, which is a trend reversal signal.
The article warns that if PI tokens fail to hold the support level of $0.57 from the low on May 7, they may continue the downward trend towards the psychological level of $0.50.
Source: FXStreet
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