Pi Network Coin Drops 32.4% Amid Supply Increase and Middle East Tensions

Pi Network coin (PI) has experienced a significant decline in the past month, with losses amounting to 32.4% after it broke below its critical support level of $0.60. This downturn has left the community disappointed, as there have been few updates and ecosystem growth initiatives from the Pi Core Team since the launch of the public mainnet. Even the most ardent supporters have expressed concerns, suggesting that Pi could continue to drop to $0.40 unless the development team makes a positive announcement during the widely anticipated event known as Two-Pi Day or “Tau Day,” scheduled for June 28. During this event, the team is expected to unveil its latest efforts to expand the Pi Network ecosystem.

Data from PiScan indicates that 263 million Pi tokens, worth approximately $143 million, will be unlocked this month. This is the highest monthly volume to be added to Pi’s supply until September 2027, when another 310 million tokens will be released. This significant increase in supply, coupled with rising tensions in the Middle East, could be contributing factors to Pi's recent sharp decline.

Despite this recent weakness, the community remains optimistic that solid announcements on Pi Day could lead to a bullish price forecast for Pi. The token has already hit a key resistance level at around $0.55, which is the most critical resistance to watch. A break above this level would confirm an upcoming push to $0.57 in the near term. The 9-period exponential moving average (EMA) has jumped above its 21-period peer, indicating a buy signal known as a ‘golden cross.’ This signal confirms a change in momentum and the direction of the price trend.

Next, the $0.57 level will be the key resistance to overcome for bulls, as it is an area of confluence where the 200-period EMA also stands. If Pi breaks above this level, it would favor a bullish Pi Coin price prediction, potentially seeing the token rise to $0.60. Any significant announcement on Pi Day could cause the token to rise to at least $1 per coin, as the community will be expecting a substantial move if the team shares exciting news.