Pi Network Price Drop Alert: Token Unlock and Profit-Taking Trigger Selling Concerns

Pi Network is currently trading at approximately $0.1879, down about 37% from the recent high of $0.29, failing to recover the key resistance level of $0.20 for several consecutive days. On-chain data shows supply-side pressure is accumulating across multiple dimensions: approximately 154.2 million tokens are expected to unlock and enter the market in the next 30 days, and exchange reserves have surged by over 2 million tokens within an hour to 473 million.

Triple Supply-Side Pressure: Unlocking, Reserve Surge, and Early Profit-Taking

Pi Network faces three simultaneous supply-side pressures:

Token Unlocking Surge: According to PiScan data, about 154.2 million tokens are set to be released in the next 30 days, averaging around 5.1 million tokens per day entering circulation. Historically, large unlocking events have triggered short-term selling pressure in many projects. When supply growth exceeds demand absorption, the price tends to decline further.

Exchange Reserves Spike: On-chain data shows exchange holdings increased by over 2 million tokens within an hour, with total reserves reaching 473 million. Among these, Gate holds about 251 million, and Bitget about 144.6 million. Continuous rise in exchange reserves is often seen as a precursor to holders preparing to sell.

Early Miners Profit-Taking: Over 1.43 million Pi tokens were deposited into exchanges in a single day, with Kraken recording over 60,000 tokens inflow during the same period, and OKX’s daily trading volume exceeding 2 million tokens. Analysts believe these patterns are highly consistent with early long-term holders systematically taking profits.

Weak Demand Side: Diminished Trading Volume and Macro Headwinds

Contrasting the supply pressures, demand support is also weakening. Pi’s 24-hour trading volume has fallen 34.42% to about 15.58 million tokens, indicating reduced participation from short-term traders. If trading volume does not increase in tandem, any rebound will face significant challenges.

On the macro front, Bitcoin has declined about 4 over the past week, encountering clear resistance above $72,000. Mainstream altcoins like Ethereum, Solana, and Ripple (XRP) are also generally consolidating. Ongoing geopolitical uncertainties between the US and Iran keep investors cautious, and overall risk sentiment in digital assets remains short-term subdued.

Technical Analysis: RSI Bearish, MACD Downtrend, $0.17 as Last Bullish Defense

On the 4-hour chart, Pi Network’s momentum appears weak. The Relative Strength Index (RSI) is around 46, below the neutral 50, indicating slight bearishness from sellers. The Moving Average Convergence Divergence (MACD) line is slightly below the signal line, showing a bearish crossover on the 4-hour timeframe, further suppressing upward momentum.

Key technical levels traders are watching: $0.20 as immediate resistance—failure to break this level limits rebound potential; $0.17 as the current support zone—if broken, next support is at $0.15. Conversely, if market sentiment improves and Pi breaks above $0.20, resistance above is at $0.25.

Frequently Asked Questions

Q: What are the main reasons for Pi Network’s recent decline?
Pi has fallen about 37% from its high of $0.29, mainly due to systematic profit-taking by early miners, token unlocking pressure increasing supply, and declining trading volume reflecting weak demand. Macro geopolitical uncertainties and overall market consolidation also contribute to the downside.

Q: What does the surge in exchange reserves indicate?
An increase in exchange reserves suggests more tokens are moving from private wallets to exchanges, often a precursor to selling. Currently, Pi’s total exchange holdings have reached 473 million and continue to rise, representing a key short-term sell-side indicator.

Q: What are the key technical supports and resistances for Pi Network?
Analysts see $0.17 as the critical support level for bulls; a break below could target $0.15. Resistance is at $0.20; a successful breakout could open the way to $0.25. RSI around 46 and bearish MACD crossover indicate short-term weakness, with confirmation requiring volume support.