PI Plummets 20% Amid Bearish MACD Crossover and Token Unlock Event

PI, a prominent altcoin, has experienced a significant price decline of nearly 20% over the past week. This downturn is attributed to a bearish MACD crossover, which signals deeper losses in the near term. The MACD indicator, which identifies trends and momentum in price movements, suggests that the asset's bullish structure is breaking down. This pattern emerges when the MACD line falls below the signal line, indicating growing bearish momentum and fading buying strength. Traders interpret this setup as a sell signal, which could intensify the downward pressure on PI’s price if selling activity accelerates.

Adding to the bearish outlook, PI faces a significant token unlock event in the coming month. According to data, 312.29 million PI tokens, valued at $152 million at current prices, will be unlocked over the next 30 days. This unlock presents a major challenge for the altcoin, especially given the already weak bullish sentiment surrounding PI. With buying interest in the market noticeably low, there is little assurance that the newly unlocked tokens will be absorbed by sufficient demand. If demand fails to match the increase in circulating supply, the imbalance could trigger heightened sell pressure, further exacerbating the price decline.

On the daily chart, PI has slipped back into its descending trendline, having broken above this trendline on June 25 but failing to sustain the rally. The token is now at risk of revisiting its all-time low of $0.40. However, if a surge in new demand emerges, it could help stabilize the price and invalidate the bearish outlook. In that case, PI could rebound and move toward the $0.57 resistance level. Traders should closely monitor the MACD crossover and volume trends as key indicators of PI’s short-term trajectory. The token unlock event adds an additional layer of risk, potentially increasing volatility as new supply enters the market.

Strategic entry points may emerge near the $0.40 support level, but caution is warranted given the prevailing bearish momentum. Risk management strategies, including stop-loss orders, could help mitigate potential losses during this uncertain period. On-chain analytics reveal a decline in active addresses and transaction volumes, signaling reduced engagement from the PI community. This decline in network activity often correlates with diminishing investor confidence, which may further pressure the token’s price. Market participants should watch for any uptick in on-chain metrics as a potential early sign of renewed interest or accumulation, which could precede a price recovery.

In conclusion, PI’s recent price decline is underscored by a bearish MACD crossover and a looming token unlock event that threatens to increase selling pressure. The critical support level at $0.40 will be a decisive point for the altcoin’s near-term direction. While bearish momentum currently dominates, a rebound is possible if new demand materializes, potentially targeting $0.57. Traders and investors should remain vigilant, leveraging technical and on-chain data to navigate this volatile phase effectively.