On Monday, Pi Network saw a substantial drop of almost 15%, as investors rushed to sell off their holdings ahead of a major token unlock. This decline has brought the token to an unprecedented low, intensifying the bearish feeling throughout the market.
Summary
- The price of Pi Network decreased by 15% as traders reacted to the upcoming unlock of over 100 million tokens.
- A drop in open interest, negative funding rates, and a technical breakdown have fueled the ongoing bearish trend.
- A falling wedge pattern indicates a possibility for long-term recovery; however, macroeconomic risks and low demand keep sellers in control.
According to crypto.news, the price of Pi Network (PI) fell to around $0.08 on Monday after dropping below the important support range of $0.11-$0.12, which had been stable for several weeks.
This decline aligns with preparations for one of the largest token expansions in the network’s history, with 127.5 million PI tokens expected to be introduced in circulation in the upcoming weeks, as per PiScan data. The anticipation of a significant increase in liquid supply has prompted holders to sell, leading to overwhelming exchange liquidity.
Data from derivatives markets also reflects weakness alongside the spot market. CoinAnk’s analysis indicated that Pi Network’s open interest has dropped from over $10.8 million to approximately $8.48 million recently, attributed to the closure of leveraged long positions. Funding rates remain notably negative at about -2.15%, suggesting that perpetual futures traders favor short positions over recovery bets.
Recent geopolitical developments have added to the pressure. Renewed tensions between the United States and Iran have resulted in rising oil prices and heightened inflation concerns, discouraging demand for speculative assets within the crypto markets.
While Bitcoin and other major cryptocurrencies have experienced relatively minor pullbacks, lower-liquidity tokens like PI have faced sharper declines as traders gravitate toward safer investments.
Token unlocks intensify selling pressure
New updates from the Pi Network ecosystem have not eased concerns regarding supply. Announcements from Pi2Day introduced new developer tools, storage improvements, and verification services, yet traders remain focused on the absence of a fully functional mainnet, limited exchange listings, and relatively low real-world payment adoption.
Furthermore, community sentiment has diminished as the projected monthly unlocks have outstripped optimism about ecosystem advancements. Without stronger demand to absorb the increased circulating supply, investors are skeptical about whether new product launches can stabilize the token’s value.
Trader Crypto With Gopal notes that there may still be long-term reversal opportunities in the current structure, despite the ongoing selling activity.
“$PI is forming a falling wedge after a prolonged downtrend. The price is tightening towards the apex, as sellers are losing momentum and buyers are actively defending the lower trendline.”
The analyst further mentioned, “A decisive move above the wedge’s resistance could prompt a swift recovery as sidelined buyers re-engage.”
Technical breakdown perpetuates bearish sentiment
The daily chart shows PI trading within a clearly defined descending channel that has led prices lower since early May. The decline on Monday pushed the token below the lower boundary of this channel and below the 0/8 Murrey Math support level near $0.0977, with the next key downside targets near $0.0855 and $0.0732 representing the closest technical support levels. The price remains below the 20-day, 50-day, and 200-day exponential moving averages, reinforcing the ongoing downtrend.
Chaikin Money Flow has dropped to about -0.15, indicating continued capital outflows from the asset. A potential recovery would require first reclaiming the previous support level at $0.1099 prior to testing resistance around $0.1220, where historic breakdown points and selling interest are likely to arise.
Failure to maintain the $0.073-$0.085 support range would strengthen the bearish outlook and could trigger another wave of liquidation if token unlocks occur without a corresponding surge in demand.
Ongoing geopolitical uncertainty, persistent negative funding rates, and further reductions in open interest could exacerbate these risks, while a decisive breakout above the falling wedge, alongside renewed buying volume, would negate the immediate bearish perspective.
Disclosure: This article does not constitute investment advice. All content and materials featured on this page are for educational purposes only.
