The cryptocurrency market staged a significant rally Sunday while Pi Network's native token bucked the trend with another substantial decline. Bitcoin and several major altcoins posted impressive gains over the last 24 hours, but Pi's token fell an additional 6%, continuing its weeks-long downward spiral.
Bitcoin led the market recovery by climbing to $87,000 for the first time since Thursday morning. The leading cryptocurrency had previously been rejected at $87,500 before retreating several thousand dollars in value.
This resurgence signals renewed confidence in the broader digital asset space even as certain tokens struggle.
Several altcoins outperformed the broader market with Avalanche emerging as the top gainer among larger-cap cryptocurrencies. AVAX surged 11% to exceed $21 per token, while LINK, SOL, HBAR, and SUI also recorded notable gains during the same period.
Pi Network's token stands in stark contrast to these positive movements. The asset has lost over 30% of its value in just one week and has plummeted nearly 70% from its all-time high recorded on February 26. This persistent decline comes despite recent announcements from the project team that might have been expected to boost investor confidence.
TRX joins Pi as one of the few major tokens deep in negative territory, posting a 4.5% loss while most cryptocurrencies rallied. The ongoing price deterioration for Pi Network comes at a particularly challenging time as the broader market shows signs of recovery and growth.
Pi News, the project's official media channel on X (formerly Twitter), highlighted a potentially troubling development for token holders. In a Sunday post, the account noted that deposits of PI tokens to centralized exchanges had reached an unprecedented 330 million coins, establishing a new record high for exchange inflows.
"330M of $PI deposited in CEX has reached a record high. Currently, the $PI price remains in the $1 range," Pi News stated in its post. Large token movements to exchanges typically signal bearish short-term prospects, as they often precede increased selling pressure when investors liquidate positions.
The influx of tokens to exchanges appears particularly significant given recent project developments. Pi Network recently announced a partnership aimed at enhancing protocol transparency, which under normal circumstances might have supported token value.
Additionally, some market analysts had identified technical indicators suggesting a potential trend reversal, yet these positive signals have failed to materialize in actual price performance.
Despite the concerning market metrics, the Pi Network team maintains an optimistic outlook on the project's future. "Perhaps by participating in the construction of the Pi ecosystem, the price of PI will reach a new high," the team suggested in their recent communication, emphasizing community involvement as a potential catalyst for price recovery.
The contrast between Pi's performance and the broader market underscores the uneven nature of cryptocurrency recoveries. While established tokens benefit from renewed market confidence, projects with specific concerns or challenges may continue to face headwinds regardless of general market sentiment.