Pi Coin Drops 5% to $0.485 Amid Bearish Sentiment

Pi Coin, a cryptocurrency that has garnered significant attention, is currently under considerable pressure, with its value experiencing a notable decline. The cryptocurrency has dropped by 5% to $0.485, and market experts are predicting a further decline to $0.40 by August. This downward trend is not isolated; it has been a consistent pattern over the past few days, with the price edging lower by 3% on Tuesday, extending the reversal run for the sixth consecutive day. The bearish sentiment has been fueled by the failure of key updates to boost momentum, leading to a lack of bullish conviction in the market.

The immediate support level at $0.47 is crucial as it has been tested multiple times. A breach below this point could signal a deeper correction, with the price potentially slipping below $0.50 in the next week or so. This could lead to a drop to $0.45 or even $0.40 before bottoming out. The resistance level at $0.66 remains a formidable barrier, and clearing this level would be a significant achievement for the bulls. However, the current price structure indicates lower highs, suggesting that the bears have the upper hand in the short term.

The recent rebound of 7% post-Pi2Day has provided some relief, but the macro downtrend remains intact. The upcoming token unlock could trigger over $215M in sell pressure, according to analysts' forecasts, adding to the bearish outlook. The market dynamics suggest that the bears are increasing their short positions, which could lead to a potential short squeeze if the price manages to reverse its trend.

Key technical levels are threatened, including thresholds at $0.5031, $0.4711, and $0.40, which have already been tested multiple times. If buying pressure does not increase, Pi might decline to the underlying support at $0.40 instead of breaking out. The price has been fluctuating between $0.78 and $1.62, with resistance near $2.13 and support at $0.46. The secondary resistance at $2.98 adds another layer of complexity for bulls aiming to push the price higher. The bears appear to be in control, with the price structure showing a clear downward trend.

Despite the unveiling of Pi App Studio—an AI-powered platform for building applications without code—momentum has been largely absent. Analysts are forecasting further losses, with predictions pointing to a drop toward the $0.40 mark by August. A major driver behind this sentiment is the scheduled release of 318 million new Pi tokens over the next month, a move that many believe could flood the market and intensify downward pressure.

Historically, the Pi2Day event has not inspired much optimism. In fact, for the third consecutive year, Pi Coin has declined shortly after the event, reinforcing a pattern of “sell-the-news” behavior. Meanwhile, Pi Network is attempting to diversify its ecosystem with recent additions like the Ecosystem Directory Staking tool and its no-code development platform. But concerns over centralization persist. Data shows the vast majority of Pi Coin is concentrated in the hands of a small number of wallets. According to BscScan, 100 addresses hold over 96% of the circulating 7.6 billion Pi tokens. When factoring in the entire supply of 100 billion tokens, just over 15,000 holders control nearly all of it—representing a staggering $48.6 billion in theoretical value at current prices. This wealth concentration could pose challenges for long-term network stability and adoption.