The Pi Network price is under pressure as traders lose confidence in new catalysts meant to boost adoption. The token has remained stuck around $0.34 since August despite multiple developments.

Valour Pi Fund Demand Falters

Pi Network has been struggling with how to translate big announcements into sustained momentum. During May, developers announced a $100 million ecosystem fund to get builders to come and extend utility. But the token fell, rather than flocked about. Subsequently, the launch of Pi AI Studio, which allows developers to create AI-driven applications, did not generate much energy. The re-upgrade, which had recently been made to match with Stellar Protocol 23, did not help to improve the mood.

Now, attention has shifted to the Valour Pi ETP. The product was launched two weeks ago to open Pi access for both retail and institutional investors. Yet, demand has been minimal. Data shows the fund has attracted just 18,483 SEK, or about $1,967, since launch. That figure is insignificant when compared to Valour’s $900 million in total assets under management. It is also small compared to the market capitalization of Pi of $2.7 billion.

The sluggish uptake is an indication that wider players in the market have reservations regarding the prospects of Pi. The ETP does not work as a confidence driver without any meaningful inflows. This continues to undermine the story that Pi Network can maintain adoption unless it has greater utility or larger exchange listings.

Technical Outlook Points to Weakness

It is price action that indicates weak momentum. Pi Network has fallen below the 50-week exponential moving average on the eight-hour chart. This indicates that the bearish trend remains. The token is also developing a bearish flag. This pattern, characterized by a sharp decline followed by a sideways movement, is typically followed by a further decline.

In addition, Pi is trading beneath the Ichimoku cloud, which indicates that there is constant selling pressure. The Relative Strength Index has also fallen below the markedly 50, which indicates deteriorating demand. In case bears drive the price below $0.3427, PI might validate a double-bottom breakdown and maximize losses.

Generally, Pi Network still finds it difficult to turn announcements into good price action. The token has a risk of failure unless utility increases and more exchange listings are made. Traders are monitoring closely a break of support, which may be the beginning of another bearish wave.