🔻 PI Token Slips Below $0.50 — Is the Hype Finally Fading?
Pi core team wallet outflows raise supply shock risk.
Growing CEX wallet balances imply a reserve increase, fuelling supply dump worries.
The Pi Network has fallen for five days, with signs indicating negative momentum.
Pi Network (PI) is down 1% at press time on Thursday, threatening a dip below $0.50. Pi Network may drop below $0.50 in June for three reasons if the negative trend continues.
Reasons PI token fell below $0.50
The PI token has dropped more than 10% this week, and the technical picture, together with increased withdrawals from the Pi core team and a jump in supply via Centralized Exchanges (CEX) wallets, suggests a supply wave.
PiScan data reveals a 24-hour net outflow of -7,883,194.18 Pi tokens from the Pi Foundation 2 wallet. As Pi Foundation wallets sell, supply dumps weaken market demand, lowering prices.
Additionally, the Pi Foundation 4 wallet funded the three biggest Pi transactions in the preceding 24 hours. Over four years ago, GCVMPI...6B3Q6N, GBE27J...XHPQOV, and GDIRKJ...LRZTKQ earned 2,000,001 PI tokens. On Thursday, the wallets moved 1.58 million, 1.53 million, and 1.43 million PI in sync, suggesting a strategic money movement or over-the-counter trade. In any instance, supply entering the spot market after four years would lower trust.
PiScan data shows CEX wallet balances rising significantly, suggesting retail or whale investors may sell.
MEXC and Gate.io had 345K and 431K PI net flows, while Pionex wallets expanded by 22K. The five transactions netted 4.91 million PI.
The decline has broken $0.5524 support, the April 29 low, as PI battles to maintain above $0.5223, the weekly low. Pi Network may correct to $0.5090 on April 4 if it closes below the weekly low. The final line of defense is $0.4000, tested twice on April 5 and June 13.
Pi Network must avoid a sharper weekly low and print a bullish candle to mitigate bearish risk. A decisive close above $0.6000 might restart the rise and aim $0.6600, the monthly high.
