The price increase of Pi Network seems to be weakening and may soon drop below $0.40. Despite recent announcements about the growth of the ecosystem and application hosting, experts indicate that most positive developments have already been priced in, leaving little support for the current price.

The Factors Behind Pessimistic Outlook

1. The hype of Pi2Day has been fully priced in: The excitement surrounding the Pi2Day event in June, AI collaborations, new merchant listings, and ecosystem applications briefly boosted market sentiment. However, these announcements were driven more by emotion than by actual capital inflow, and their impact on price has faded.

2. Large token unlock expected in July: In July, over 276 million PI tokens, accounting for 3.7% of the circulating supply, will be unlocked. With no new developments expected in the near term, this increase in available tokens could create additional selling pressure, prompting cautious behavior or price declines in the market.

3. Short-term price rally: Historically, Pi Network's price rallies have occurred over a short period. Events such as the Mainnet launch and the Pi2Day celebration have caused short-term price spikes, often lasting less than a week, before the price returns to previous levels. Therefore, professional traders remain hesitant to hold long positions.

4. $0.40 is a key support level: Technical indicators suggest that $0.40 is both a significant support level on the chart and a psychological threshold. Dropping below this level could trigger buying interest, creating a triple bottom pattern that could support future recovery.

While the short-term price forecast remains pessimistic, Pi Network recently introduced an update to its platform that could strengthen its ecosystem. The core team has announced that they will begin directly hosting developer applications, eliminating the need for external infrastructure such as servers and security systems.

This change is expected to lower barriers for developers, allowing for faster and easier creation of applications that use Pi for payments and transactions. It could help attract more developers to the platform and gradually increase the utility and use cases for the Pi token.