Pi Price Slumps 14% Amid Crypto Market Selloff and 'Sell the News' Reaction
Pi's price plummeted by approximately 14% on September 16th due to a combination of factors.
The broader crypto market saw a significant decline after the US Senate failed to advance the Digital Asset Market CLARITY Act. This, coupled with fears of a Federal Reserve rate hike, led to a sharp drop in prices across the board.
Pi's Protocol 27 upgrade, which aimed to enhance smart-contract authentication and update node software, initially sparked excitement but ultimately turned into a 'sell the news' event. As the upgrade was rolled out, traders took profits, shifting their focus from expectations to actual usage.
The drop below the $0.09 level, a key psychological price point for Pi, accelerated selling. The Relative Strength Index (RSI) dropped to 23 on the daily timeframe, indicating an oversold condition. Thin liquidity and a relatively new token status made PI more vulnerable to the downturn.