Investigate the price forecast for Pi Network and the potential effects of the forthcoming release of $139 million tokens on the performance of Pi Coin.
The price of Pi Network encounters a significant obstacle in its efforts to rebound in May, coinciding with the anticipated unlocks of $139 million PI tokens.
These unlocks are scheduled to take place throughout the month and may exert downward pressure on this altcoin, impeding its escape from prevailing bearish trends.
As of the latest update, Pi Coin is valued at $0.59, reflecting a 3% decrease over the past 24 hours.
Additionally, trading volumes have decreased by 50%, indicating that the altcoin remains entrenched in a bearish trend due to diminished market interest.
Pi Network Price Forecast Ahead of $139M Unlocks in May
The price of the Pi Network is currently experiencing bearish pressure, as data from PiScan indicates that 234 million PI tokens, worth around $139 million, are set to be unlocked in May.
Previous unlocks have led to a significant increase in selling pressure last month, and if past patterns hold true, this situation may recur, resulting in further downward pressure.
Renowned analyst Dr. Altcoin expressed that, notwithstanding the recent unlocks and the speculation surrounding the potential decline of Pi Coin, the token is expected to maintain its resilience, as the development team has been actively managing the influx of unlocked PI into exchanges. He remarked,
The PCT appears to have robust strategies established and has been acquiring as much Pi from centralized exchanges as feasible, thereby assisting in keeping the price above $0.50.
However, the unlocking of PI tokens is not the sole challenge impacting the price of the Pi Network.
The mining rate experienced a modest increase of 2% in May, resulting in a greater number of PI tokens being added to the circulating supply, which will contribute to inflationary pressures and a decline in price.
Considering the aforementioned challenges primarily indicating an increase in supply, along with the consequent effects on the PI, it is evident that the price forecast for the Pi Network is pessimistic, suggesting a potential downward trend.
PI Technical Analysis as Bearish Momentum Strengthens
The 2-hour price chart for Pi Coin indicates a strengthening bearish momentum for this altcoin, as evidenced by the RSI.
This indicator has been consistently recording lower lows and has dropped to 46, suggesting that the downtrend is likely to persist. Under the prevailing downward pressure, the initial support level to monitor is the 23.6% Fibonacci level at $0.58.
Should this level fail to hold, it could initiate the next bearish movement towards $0.56. Additionally, the Bollinger band indicators are tightening, signaling that a breakout may be imminent.
If such a breakout occurs, traders should be prepared for a potential upward movement towards the upper band at $0.62.
Given the potential effects of the upcoming token unlocks and the bearish trend observed on the 2-hour chart, it is evident that the price outlook for the Pi Network is negative, suggesting that traders should prepare for a downward movement.
This bearish perspective will be rendered invalid if PI manages to surpass the resistance level of $0.62.
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