Pi Network Price Forecast: PI Flashes Bearish Potential as Selling Pressure Mounts

Pi Network (PI) has seen a bearish shift in its price trend as of 2026-01-08. The token trades at around $0.2000, following a nearly 2% drop the previous day. Centralized exchanges have seen a notable inflow of 1.90 million PI tokens in the past 24 hours, signaling increased selling pressure.

Technical indicators point to a potential cross below the 20-day Exponential Moving Average (EMA), which could trigger further declines. The Relative Strength Index (RSI) has dipped below the midpoint to 48, suggesting a dominance of bearish momentum. The Moving Average Convergence Divergence (MACD) is also showing a lateral shift with declining green histogram bars, a sign of weakening bullish momentum.

A key concern for investors is the upcoming token unlocks, where over 117 million PI tokens are scheduled to be released in January. This could intensify selling pressure on an already thin market. Limited exchange listings and lower trading volumes exacerbate the issue, as even modest selling activity can drive significant price swings.

Why Did This Happen?

The selling pressure appears to be driven by a combination of factors. First, the recent token unlocks are adding more supply to the market. These unlocked tokens often end up on centralized exchanges, where they are more likely to be sold by holders. Second, the network's low node count and concentration of supply under the Pi Foundation raise concerns about decentralization. With only 28 nodes and limited validator diversity, the network is perceived as less secure, which can deter investor confidence.

Weak liquidity is another factor. PI is primarily listed on OKX, Gate.io, and MEXC, which means its order books are relatively shallow compared to more widely traded tokens. A large sell order can easily overwhelm available buyers, leading to sharp price drops.

What Are Analysts Watching Next?

Analysts are monitoring key technical levels to gauge the token's next move. The 20-day EMA at $0.2092 and the 50-day EMA at $0.2166 serve as critical support and resistance levels. If PI continues to weaken and crosses below the 20-day EMA, it could test support levels at $0.1996 and $0.1842.

On the other hand, if the token manages to break above the 50-day EMA and sustain momentum, it could target $0.2295. This level was last tested on December 5, and a successful move above it could indicate a potential reversal in the bearish trend.

Market participants are also watching for signs of increased buyer participation. A rise in trading volume and a shift in the RSI above 50 could signal renewed interest in the token. However, as long as the broader market remains weak and liquidity is limited, the bearish bias is likely to persist.

How Do Broader Market Conditions Play a Role?

The broader cryptocurrency market has also experienced a slight decline, which has put downward pressure on altcoins like PI. The global crypto market dropped by approximately 2.24% in the last 24 hours, contributing to the PI token's 1.3% decline.

Bitcoin's dominance in the market is another factor to consider. During periods of uncertainty, investors often flock to Bitcoin as a safer alternative to volatile altcoins. A high Bitcoin dominance can signal a risk-off environment, where altcoins face increased selling pressure.

Investors are advised to remain cautious and closely track developments, including any protocol upgrades or strategic moves by the Pi Network team. The launch of a decentralized exchange in Q1 2026 is seen as a potential catalyst for improved liquidity and market participation, though it will depend on execution.