Pi Network Foundation sells 48.88 million tokens, PI technical outlook is bearish

On Monday, the price of Pi Network (PI) hovered around $0.1700. On Sunday, the Pi Foundation first strategically transferred 50 million PI tokens from its wallet, then released 48.88 million PI into the open market, causing a surge in supply. Technically, PI failed to break above the critical 50-day Exponential Moving Average (EMA) of $0.1740, with momentum leaning neutral to bearish.

Foundation Sell-Off Mechanism: Market Impact Analysis of 48.88 Million Tokens

(Source: PiScan)

According to on-chain data from PiScan, before releasing 48.88 million PI tokens into the open market, the Pi Foundation transferred 50 million PI from its wallet, consistent with common patterns of core team wallet token outflows—often believed to be related to mainnet migration rewards. However, the community has long criticized the transparency of this process.

This large-scale token sell-off directly increased market supply, interrupting PI’s four-day rebound trend, indicating that the Foundation’s selling activity remains a significant short-term disruptive factor for PI’s price movement.

Key Data on PI Network Sell-Off Event

Pi Foundation Transfer Amount: 50 million PI tokens (transferred from Foundation wallet)

Actual Market Entry: 48.88 million PI tokens released into the open market

Market Impact: Ended four-day rebound, PI dropped about 2% in a single day

Transparency Issue: The community has long criticized the lack of transparency and clear explanation regarding core team wallet outflows

Current Price Level: Around $0.1700, attempting to establish a short-term bottom

Technical Analysis: The $0.1740 Moving Average as a Key Support/Resistance Level

From a technical perspective, Pi Network is currently trading below the 50-day EMA ($0.1740). Both the 50-day and 200-day moving averages are sloping downward, maintaining a short-term bearish bias. The MACD is slightly positive but approaching the signal line, indicating weakening bullish momentum and an increased risk of a bearish crossover. The RSI is at a neutral 50 level, not providing a clear directional signal.

Downside Risks: If support at $0.1700 fails, the next key support levels are $0.1533 (October 10 low) and $0.1300 (February 6 low).

Upside Conditions: If PI can close effectively above the 50-day EMA of $0.1740, it may attempt to challenge the descending resistance trendline near $0.1919. Until then, the combined pressure from Foundation sell-offs and moving average resistance makes a short-term rebound challenging.

Frequently Asked Questions

Why is the Pi Foundation selling tokens, and what does this mean for PI?

According to PiScan on-chain data, the Pi Foundation has released 48.88 million PI tokens into the open market, usually related to mainnet migration rewards. However, the community criticizes the lack of transparency, and large token releases increase supply pressure, disrupting PI’s initial rebound.

What are the current key technical support and resistance levels for PI?

The current key resistance is at the 50-day EMA of $0.1740. A successful breakout could target around $0.1919. Key supports are at $0.1533 (October 10 low) and $0.1300 (February 6 low). If support at $0.1533 fails, bearish sentiment will further strengthen.

What signals are current technical indicators sending for PI?

MACD is approaching the signal line, indicating weakening bullish momentum and an increased risk of a bearish crossover. RSI remains at a neutral 50. Both the 50-day and 200-day moving averages are sloping downward, suggesting overall technical bias is neutral to bearish, with no clear short-term bullish triggers.