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Pi Coin Faces 10% Decline Amid $10 Million Token Unlock – AInvest

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Pi Network, a cryptocurrency project that gained popularity through its phone mining concept, is currently facing significant challenges due to upcoming token unlocks and growing criticism. Over 300 million PI tokens are scheduled to be released in July, which has raised concerns among investors about potential price declines. The influx of new tokens into the market is expected to dilute the value of existing holdings, exacerbating the bearish sentiment that has been building in recent weeks.
The price of Pi Coin, the native token of Pi Network, has been volatile, trading around $0.498 and experiencing a decline of over 10% in the past week. This downward trend is particularly concerning as it coincides with a major $10 million token unlock set to flood the market with over 19 million additional coins. The first and largest daily token release, worth nearly $10 million, is scheduled for July 4, raising fears of an imminent selloff as early holders and speculators may offload their tokens.
Technical analysis indicates a bearish outlook for Pi Coin. A bearish flag pattern has emerged on the charts, suggesting a potential drop to $0.351 if the current support levels fail to hold. This level is dangerously close to the token’s historical low of $0.401, recorded just three months ago in April. Momentum indicators such as the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) are also showing signs of weakness, further intensifying the selling pressure.
Adding to the concerns, Pi Coin has decoupled from Bitcoin’s rally, with its correlation dropping to just 0.07. This disconnect indicates that Pi is no longer benefiting from the bullish sentiment in the broader crypto market, making it more vulnerable to localized negative pressure. Historically, altcoins tend to follow Bitcoin’s lead during rallies, but Pi’s failure to keep up has eroded investor confidence. As a result, sentiment around the token has declined, and market participants now fear that Pi may not recover even if the overall crypto landscape remains bullish.
The price of Pi Coin is currently balancing just above a critical support level at $0.493. If this support is lost, traders expect a swift move toward the $0.45 mark, with further downside likely if the market fails to absorb the incoming supply. Despite the downward momentum, a reversal is not entirely out of the question. If bulls manage to push the price above $0.518 and convert it into support, Pi Coin may regain momentum and avoid the worst-case scenario of testing new lows. However, given the scale of the unlock and the prevailing negative sentiment, such a recovery would require a strong surge in demand—something the market has yet to show.
Even with growing speculative interest reflected by a $23 million open interest figure, the risk of a long squeeze grows larger with every price dip. As things stand, Pi Network faces a precarious short-term future. With its market cap slipping and technical indicators flashing red, the $10 million unlock may well be the catalyst that drives the next major leg down. The upcoming token unlocks, combined with the staking model, could exacerbate selling pressure, further complicating the situation for Pi Network.
Pi Network’s recent token unlock released 270 million PI tokens, affecting price. Market skepticism persists from leaders like Bybit’s CEO, questioning the platform’s legitimacy and data security concerns. The major token unlock caused a 13% intraday price drop. Founders Dr. Nicolas Kokkalis and Dr. Chengdiao Fan have not publicly addressed collapse rumors, maintaining the network’s activity.
The token unlock led to increased market liquidity, with $80 million in daily trading volume. However, top 100 wallets holding 96% of PI supply increase volatility concerns. Global exchanges responding include OKX and Gate.io, keeping the asset on their platforms. Binance’s absence is a setback, potentially influencing trader confidence and network growth.
Previous token unlocks led to temporary declines but eventual stabilization. The current market reaction mirrors past events, with speculative buying expected to return prices to normal. Expert analysis suggests speculative capital might stabilize prices post-unlock. Community engagement with 7,900+ applications shows continued developer interest, suggesting ongoing network potential. Kim H Wong, a Digital Currency Analyst, stated, “Trading in Pi is disappointing as pioneers keep selling and buy orders are small (highest 1K Pi, on average a few hundred Pi). No big capital is in sight. However, as sellers exhaust, and buyers jump in, price should go back up again. No matter what, what is important is that the Pi network has successfully opened its network to the world … Hold your precious Pi coins.”


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