Pi Network Coin Drops 9% Amid Token Unlock Concerns

Pi Network Coin, a cryptocurrency that gained popularity through its mobile app mining approach, has seen a significant decline in its price. The coin has dropped by 9% in the past 24 hours, trading near $0.471, which is close to its all-time low of $0.40. This decline is particularly notable given the overall rally in the crypto market, with Bitcoin surpassing $118,000 and Ethereum crossing $3,000.

The recent Pi2Day celebration, which was intended to boost excitement within the Pi community, failed to lift the coin's price. Over the past two weeks, Pi has fallen by more than 29%, indicating a deepening downtrend. One of the primary reasons for this continued slide is the massive token unlock scheduled for July. Between July 8 and July 15, over 100 million Pi tokens, representing about 1.5% of the total supply, will be released onto the market. On one day alone, 10.1 million tokens will be unlocked, adding significant selling pressure as large holders look to take profits.

Technical analysis of Pi Coin shows a clear downward channel, with each attempt to break higher being met with selling pressure. The trading volume is low at $19.95 million, indicating a lack of buying strength to reverse the trend. The Relative Strength Index (RSI) for Pi Network is currently at 39.8, reflecting an oversold condition. This technical weakness, combined with the heavy selling pressure from the token unlock, has contributed to the coin's downward spiral.

Looking ahead, the risks for Pi Coin appear to outweigh the potential for a sudden turnaround. With so many tokens unlocking and large holders ready to sell, Pi could easily slip back to test the $0.40 zone or even drop further to the $0.35 or $0.38 range if conditions worsen. Until Pi sees stronger buying interest, emergency liquidity, or a significant exchange listing, the price may remain stuck in this bearish phase.

Despite the current challenges, there are indications that the Pi token price may rebound in the coming weeks. The ongoing crypto market bull run has historically lifted the prices of various cryptocurrencies, and a reduction in the supply of Pi tokens could alleviate selling pressure, supporting price stability and potentially driving the price higher. Additionally, the formation of a double-bottom pattern suggests that the coin could be on the cusp of a strong bullish breakout. However, these signals must be interpreted with caution, as past attempts to break out of the descending channel have failed.

The recent upgrade to the Pi Node, aimed at enhancing decentralization, has been seen as a positive development. While the price drop has been significant, the ongoing development efforts are viewed as a small setback compared to the long-term goals of the project. The upgrade is expected to improve the network's resilience and efficiency, which could have a positive impact on the coin's price in the future.

In summary, the Pi Network's coin price has been dropping due to a combination of technical weaknesses and the project's failure to deliver on market expectations. However, there are signs of potential recovery, including the ongoing crypto market bull run and the recent supply reduction. The project's development efforts, such as the Pi Node upgrade, also offer hope for future price stability and growth.