PI Network Faces 300 Million Token Unlock, Price at Risk of 15% Drop

The price of PI Network has been under significant bearish pressure, with over 300 million PI tokens set to unlock in July. This influx of new tokens, coupled with weak demand and rising negative sentiment, poses a substantial risk of a price drop below the key support level of $0.477. The token’s price has been consolidating, leaving many traders uncertain about its next move. Historical data indicates that similar token unlocks have not been met with sufficient demand, which could exacerbate the downward pressure on the PI Network's price.

Despite the bearish indicators, there is a wave of artificial optimism emerging in the market. This optimism is fueled by claims from the X account Pi News, which suggests that PI could soon print the largest green candle in crypto history. The account has also hinted that the PI coin is set to surprise investors in the coming weeks. The core team behind PI Network has been actively promoting their efforts to develop applications through Pi App Studio, aiming to transform the coin’s image from a stagnant asset to a promising utility coin. However, the effectiveness of this strategy remains uncertain.

On-chain metrics reveal a predominantly bearish sentiment among investors. The overall flow of people’s thoughts is pessimistic, with negative sentiment for PI spiking while positive sentiment is on the decline. This bearish sentiment is further exacerbated by the upcoming token unlocks and weak utility factors, which contribute to lower adoption. The PI Network price has reached a critical juncture, marked as a MAKE-OR-BREAK moment. If the token loses support near $0.477, it could slide to an all-time low of $0.40, raising the odds for the PI Network to descend further. Conversely, if the token unlocks meet the right demand and drive utility-driven adoption, the PI Network may have a chance of survival in the industry.