Pi Network’s Token PI Drops 20% in Two Days Amid Supply Concerns

Pi Network’s native token (PI) has experienced a significant decline over the past week, with experts warning of further potential downside. Currently trading at $0.61, the cryptocurrency has fallen nearly 20% in just two days, erasing most of the recovery it made after hitting its all-time low of $0.38 earlier this year. The token now sits approximately 400% below its all-time high, with technical indicators suggesting more pain could be ahead for pi holders.

Several crypto analysts, including the popular Dr. Altcoin, have issued warnings that PI could experience an additional 35% to 50% drop from current levels. This potential decline is primarily attributed to token supply dynamics that are creating significant selling pressure. The main factor driving the bearish outlook appears to be the massive token unlocks scheduled for Pi Network. This month alone, more than 100 million PI tokens will be released into circulation. For the full year, estimates suggest that over 1.5 billion new tokens will enter the market. This flood of new supply comes at a time when demand remains limited, partly due to PI’s absence from major cryptocurrency exchanges.

Dr. Altcoin has specifically cautioned that without intervention from the Pi Core Team to address the growing supply, prices could potentially fall to $0.30 in the coming months. The recent price action shows PI forming what technical analysts call a “falling wedge pattern,” typically suggesting continued downward momentum. If this pattern plays out, the token could retest the $0.402 level, which represents its monthly low. However, not all technical signals are negative. PI is currently holding above an ascending trendline while facing resistance from the 50-period Exponential Moving Average at approximately $0.642. The Relative Strength Index (RSI) sits at 41.6, indicating weak but potentially improving momentum. This technical setup points to an upcoming volatility breakout, though the direction remains uncertain.

Ask Aime: What are the technical indicators suggesting for Pi Network's native token, PI?

Despite the short-term bearish outlook, speculation about potential institutional adoption has kept some investors optimistic about PI’s long-term prospects. Rumors have circulated that major financial institutions may be exploring Pi Network for cross-border payments and Web3 integrations. These rumors follow Pi Network’s growing presence, including its reported affiliate status at a major university and a real estate partnership. According to a Web3 data analyst, institutional adoption could potentially drive PI’s value to between $10 and $30. This growth thesis is supported by several recent developments, including Pi’s integration with Chainlink Data Streams, a payment gateway partnership, and increasing merchant acceptance. Even Dr. Altcoin, despite his short-term bearish outlook, believes institutional traction could establish a price floor for PI, assuming the network can scale to handle enterprise-level usage.

Adding to the uncertainty surrounding PI’s price action, Dr. Altcoin has recently flagged suspicious activity on a payment gateway platform. According to his observations, numerous new accounts are being created with identical balances of 0.98 PI. This coordinated account creation with balances just under 1 PI appears designed to evade certain detection mechanisms. Dr. Altcoin warns this could be preparation for price manipulation, potentially through wash trading schemes or coordinated selling pressure. While small accounts are raising red flags, whale activity shows a different pattern. Over a recent 48-hour period, exchange balances of PI dropped by approximately 6 million tokens, suggesting larger investors may be accumulating and moving tokens to private wallets.

For traders considering PI positions, key levels to watch include $0.642 as immediate resistance. A decisive break above this level could target $0.712, while failure to hold support at $0.552 might trigger accelerated selling toward the $0.48 region. The Pi Network continues to face challenges as it works to establish its place in the increasingly competitive cryptocurrency landscape. With significant token unlocks scheduled throughout 2025, supply pressure will remain a key factor influencing price direction in the near term. For now, PI sits at a technical crossroads with both bullish and bearish scenarios possible depending on whether buyers or sellers gain the upper hand in coming trading sessions.