The price performance of the Pi Network has been weak overall in the past few weeks. Despite attempts to rise, it has not maintained any significant momentum. As August approaches, the altcoin faces additional pressures due to a large token unlocking, which could weaken the already fragile market structure.
156 million PI tokens are about to "flood" the market
The Pi project will hold a massive token unlocking event in August. According to PiScan data, approximately 156 million tokens (equivalent to about $68 million at current prices) will be unlocked over 31 days.
This event significantly increases the downside risks for the token, which is already under pressure, while demand from buyers is barely enough to support any recovery.
Open a monthly Pay account | Source: PiScan
Currently trading at $0.42, PI has failed to keep up with the broader cryptocurrency market's growth, as many assets have reached new all-time highs. The altcoin is under significant supply pressure, with over 250 million tokens entering trading this month alone.
With buying demand barely sufficient to balance this massive supply, the PI stock has been unable to create consistent upward momentum.
The price is currently "constrained" within a narrow range and hovers dangerously close to its historical low of $0.4.
A gloomy August awaits PI as buying demand gradually fades away.
Daily chart data shows that all technical indicators are sending bearish signals, with no clear signs of a trend reversal. For example, the Accumulation/Distribution (A/D) indicator for PI - a measure of buying/selling volume - has been steadily declining since June 26.
The A/D indicator is currently at -1.01 million, down more than 85% since late June - indicating a decline in investor interest.
When the A/D line for an asset is sharply declining, it means that selling volume far exceeds buying volume. This trend reflects a continuous drop in demand for PI, indicating a risk of further price declines in August.
Pi A/D Line | Source: TradingView
Additionally, after failing to break through the neutral level of 50 on July 22, the RSI of the PI stock began a downward trend. Currently, the RSI stands at 38.92, clearly reflecting the strength of sellers in the PI spot market.
The Relative Strength Index (RSI) measures whether an asset is in an overbought or oversold condition, ranging from 0 to 100. A value above 70 indicates that the asset is overbought, with a potential for its price to drop. Conversely, a value below 30 indicates that the asset is oversold, with a potential for a recovery soon.
At 38.92, with its continued decline, the RSI for PI indicates increasing bearish momentum as August approaches. This suggests that the token may continue to decline unless a reversal signal appears soon.
Can PI survive the $68 million supply wave in August?
If there is not enough new demand to absorb the 156 million PI tokens scheduled to be released next month, the altcoin could drop to its all-time low of $0.40. If the decline continues, it is very likely to reach its lowest levels.
PI Price Analysis | Source: TradingView
However, if the current trend reverses and buyers return to the market, it may help stabilize the price of PI in August, creating an opportunity to break the resistance level of $0.46.
$Pi