Pi Network (PI) Price: Token Unlocks Could Increase Supply Pressure

TLDR

Pi Network price is currently trading at $0.7796, up 6% in 24 hours but down 38% over the past week
Technical analysis shows a bearish pennant pattern forming, suggesting a potential 45% drop to $0.40
Pi Foundation’s centralization issues (holding 72.7 billion tokens) may prevent listings on major exchanges
Upcoming token unlocks (271.18 million in next 30 days) could increase supply pressure
Limited practical applications and ecosystem development raise concerns about long-term utility

The Pi Network price has seen significant volatility in recent weeks, currently trading at $0.7796. While the token is up 6% in the last 24 hours, it remains down 38% over the past week and more than 70% below its all-time high of $2.99 recorded in February.

Trading volume has increased slightly to over $221 million in the past day, showing renewed market interest despite the overall downtrend.

The recent price crash began after May 12, when Pi Network surged to $1.6631 ahead of ecosystem news. Since then, the price has dropped below several key technical indicators.

Daily chart analysis presents mixed signals. The relative strength index sits near 51, indicating a neutral trend. The 20- and 30-day moving averages have turned positive, suggesting some buying strength is returning.

However, short-term indicators like the 10-day EMA and SMA continue to flash sell signals. Current support appears to be forming around $0.77, with resistance at $0.84 that must be broken for a stronger recovery.

Pi Network Price on CoinGecko

Technical Warning Signs

Technical analysis reveals a concerning pattern forming on the eight-hour chart. Pi Network is developing what appears to be a bearish pennant pattern, consisting of a flagpole-like vertical line followed by a triangular consolidation pattern.

If this bearish pattern completes with a downward breakout, it could push Pi’s price to a support level of $0.5580, the previous low from April 9 and April 30.

A failure to hold this level could lead to further decline toward $0.40, representing a 45% drop from current prices. The only invalidation of this bearish forecast would be a rise above the psychological $1 mark.

Centralization Concerns

One of the major obstacles facing Pi Network is its centralized structure. The Pi Foundation reportedly holds at least 72.7 billion tokens valued at over $53 billion across seven wallets, plus more tokens in thousands of additional wallets.

This high level of centralization presents risks to token holders, as these wallets remain unaudited. The price could crash dramatically if the foundation sells these tokens or if hackers gain access to the wallets.

The centralized nature of Pi Network stands as a barrier to obtaining listings on major exchanges like Binance and Upbit. Most top-tier exchanges are hesitant to list crypto projects with such concentrated token distribution.

Supply Pressures

Pi Network’s tokenomics present additional challenges that may suppress price growth. Data shows the network will unlock 271.18 million tokens over the next 30 days, with a daily average exceeding 9 million tokens.

Looking further ahead, 1.49 billion tokens will be unlocked over the next 12 months. With Pi having a maximum supply of 100 billion and a current circulating supply of 7.9 billion, the supply will grow by over 92 billion tokens over time.

These continued unlocks increase the available supply, which can drive prices down, especially when not matched by corresponding demand.

Ecosystem Development Challenges

Pi Network faces criticism as a potential “ghost chain” – a blockchain with few developers building applications. While the mainnet launched with 100 apps, most have failed to gain traction.

The $100 million Pi Network Ventures fund was established to support ecosystem growth, but has yet to show significant progress. Without strong applications driving usage, the Pi Network token lacks utility beyond speculation.

Many users have been unable to access their coins since the February mainnet launch due to ongoing Know Your Customer (KYC) delays. This has frustrated early miners who expected to freely use or trade their tokens.

Exchange Listing Hurdles

Pi Network’s absence from major exchanges like Coinbase and Binance has limited its liquidity and wider adoption. While the token trades on platforms such as Gate.io, Bitget, and OKX, the lack of Tier 1 exchange listings has hampered growth.

Community members point to the team’s limited transparency as a possible reason for the absence of these key listings. This creates a cycle where reduced liquidity leads to less interest, further suppressing price.

Despite claiming a large user base of potentially 60 million people, Pi Network has struggled to translate this into real-world usage and demand.

For now, Pi Network may target the $1 mark again if it can maintain support above $0.77 and overcome resistance at $0.84. However, without addressing fundamental issues like token accessibility, exchange listings, and ecosystem development, significant price appreciation remains challenging.

The post Pi Network (PI) Price: Token Unlocks Could Increase Supply Pressure appeared first on Blockonomi.

Crypto Pulpit