PI Network Price Precarious: Are Massive Token Unlocks Triggering a Sell-Off?

The PI Network (PI) digital asset is navigating a precarious phase, consolidating within a tight price band. However, fading technical momentum and significant concerns over future token releases cast a shadow, suggesting a potential price decline.

Since mid-April, PI has oscillated narrowly, roughly between $0.59 and $0.67. The crypto token is currently probing the lower end of this channel near $0.58, increasing the possibility of a move lower.

Technical indicators paint a cautious picture. The Relative Strength Index (RSI) is at 38, below the neutral 50 mark and nearing oversold conditions. The MACD indicator also signals potential weakness; while the MACD line is marginally above the signal line, a bearish crossover seems imminent, hinting at a loss of upward momentum.

Underlying this technical unease is the fundamental risk of supply dilution. This month alone saw 21.4 million PI tokens unlocked, valued at approximately $12.3 million based on current trading levels. While this specific unlock might seem manageable, investors appear wary of larger future releases.

Projections show a substantial increase in supply over the next year, with monthly unlocks expected to average over 131 million PI. This consistent influx of new tokens can exert downward pressure on prices if demand doesn’t keep pace. Market analysts often highlight the challenge faced by crypto tokens with high inflation schedules or significant upcoming unlocks.

Compounding the issue is the vast amount of PI held by the foundation – nearly 72 billion PI (71,991,181,249 π) across various wallets. Without a major catalyst, project update, or a significant token burn event from the foundation, the weight of potential supply could continue to depress the PI price.