Price drops to a historic low, 150 million tokens unlocked put pressure
The native token of Pi Network, $PI, has recently performed poorly, with prices dipping below $0.35, a historic low (as of the time of writing, the price of $PI was $0.3578), attracting widespread attention from the cryptocurrency community. What worries investors even more is that 150 million $PI tokens worth approximately $64 million will unlock and enter market circulation within the next 30 days.
Source: CoinGecko. $PI has recently performed poorly, with prices dipping below $0.35, a historic low.
Although PI has risen 4% in the last 24 hours, recovering to $0.36, bearish sentiment still dominates market trends. Technical analysis shows that this brief rebound lacks sufficient volume support, with trading volume plummeting nearly 30% in the past day, currently around $112 million. The negative divergence phenomenon of rising prices but declining volume indicates a lack of substantial buying support for the upward momentum.
Market rumors suggest another wave of 276 million $PI tokens unlocking is imminent. After the unlocking of 8 million tokens in May this year, the price of $PI immediately fell by 25%. Given the sluggish trading activity and lack of liquidity, it may be difficult for PI to withstand such a large increase in supply.
Technical indicators are fully bearish, with Parabolic SAR forming resistance.
From a technical perspective, all indicators for $PI show clear bearish signals. The Parabolic SAR's dots are located above the price at $0.47, forming a dynamic resistance level. When the SAR indicator's dots are above the price, it indicates that the market is in a downward trend, suggesting the bearish momentum continues.
The Aroon Down Line on the daily chart has reached 100%, indicating strong selling pressure dominating the market. The MACD indicator has also shown a bearish crossover, with the MACD line falling below the signal line, which is a typical signal of seller momentum dominance. The Relative Strength Index (RSI) is currently at 24, slightly above the oversold level of 30. If buying interest returns, there may be a short-term rebound opportunity to $0.46.
Source: X/@gemxbt_agent $PI indicators are all showing bearish signals
Currently, $PI is oscillating between the historic low support level of $0.32 and the resistance level of $0.40. With the bears still in control, PI may retest the historic low or fall below that level.
Mining rewards cut again by 8%, whale concentration as high as 96%
To maintain the sustainability of the ecosystem, Pi Network reduced mining rewards by another 8% on August 1, from 0.0030165 π per hour to 0.0027746 π, marking the lowest record since the network's launch. The Pi core team also reminded users to make good use of the locking function to enhance network stability and incentivize long-term participation.
Source: Pi Network. The Pi core team reminds users to make good use of the locking function to enhance network stability and incentivize long-term participation.
However, community leader Woody Lightyear criticized Pi Network's recent app updates as seemingly filler content rather than substantial progress, questioning the core team's attempts to maintain user engagement while hiding significant developments.
Another significant risk faced by Pi Network is the high concentration of token holdings. The top 100 wallets control over 96% of the circulating supply, significantly increasing the risk of severe price fluctuations due to whale activity. On August 1, over 19 million $PI tokens entered circulation, bringing the total supply to over 7.76 billion tokens.
It is worth noting that Pi Network founders Dr. Nicolas Kokkalis and Dr. Chengdiao Fan have not made any public statements regarding the current predicament. Their silence, combined with the increasing uncertainty, is making investors more anxious. With comprehensive technical indicators turning bearish, a large-scale token unlock on the horizon, and the concentration of whales holding tokens, the price outlook for $PI is concerning.
This content is generated by Crypto Agent aggregating various information and reviewed and edited by (Crypto City). It is still in the training stage, and there may be logical biases or information errors. The content is for reference only and should not be taken as investment advice.
‘The Myth of Pi Coin Shattered? Technical Indicators All Turn Bearish! Believers Unlocking May Cause Coin Price to Continue to Hit New Lows’ This article was first published in ‘Crypto City’