Pi Struggles to Hold $0.20 as Weak Demand and Liquidity Pressures Mount

Pi Network (PI) continues to struggle for a meaningful rebound in late December 2025, trading marginally higher by almost 1% at press time after a four-day losing streak. The token hovered near the $0.2000 level, a key psychological support, but failed to generate sustained buying momentum. Santiment data shows waning social interest and declining trading volumes, signaling a broader loss of retail demand for the asset.

The token's recent performance has been hampered by a lack of catalysts to drive demand, despite efforts like the Pi Hackathon and community commerce initiatives. Daily trading volume has dropped to below 12 million PI from a peak of over 2 billion in May, while social dominance has fallen to 0.013%. These indicators highlight the challenges Pi Network faces in converting its large user base into active participants according to reports.

Technical indicators suggest a stagnation in momentum. The Relative Strength Index (RSI) stands at 40, slightly moving upward but still in neutral territory. Meanwhile, the Moving Average Convergence Divergence (MACD) stabilized above the signal line, but without a clear reversal in sentiment. If PI fails to close bullish for the day, it risks slipping below $0.2000 and testing support levels at $0.1919 and $0.1593.

Why the Standoff Happened

Pi Network's struggles extend beyond the short term. The token's price has fallen over 90% from its all-time high of $3.00 in early 2025, despite a successful mainnet launch and listing on major exchanges like OKX and Bitget. The lack of sustained investor confidence has been driven by a combination of factors, including delayed roadmap clarity, tokenomics concerns, and growing skepticism from key opinion leaders in the crypto space.

The token's steep decline was further exacerbated by the mainnet migration, which allowed users to deposit their PI on exchanges. As of December 2025, over 436 million PI tokens were listed on centralized exchanges, representing 3.40% of the total supply. This increased liquidity has also heightened the risk of price manipulation, with large holders-such as the Pi Foundation wallets and an unknown wallet holding over 391 million PI-exerting disproportionate influence according to analysis.

The project also faces regulatory headwinds. The mandatory KYB verification required for exchanges to list PI has limited its potential for broader adoption. Tier-1 exchanges like Binance have not listed the token, raising concerns about its accessibility and legitimacy in the eyes of institutional investors.

What This Means for Investors

For investors, the current environment presents both risk and uncertainty. The token's price remains vulnerable to further declines if social demand remains weak and technical support levels break. On the weekly chart, PI has been in a steady decline since February 2025, with the $0.2000 level acting as the last line of defense. Should the token slip below $0.1924, it could head toward $0.1533 and even the $0.1000 listing price.

However, there are still potential catalysts for a turnaround. A successful blockchain protocol upgrade and the deployment of full smart contract functionality could spark renewed interest. Additionally, the integration of AI-enabled KYC processes and real-world utility-such as the CiDi Games partnership-could provide a foundation for broader adoption. For these efforts to succeed, the Pi Network team must address lingering doubts about transparency and tokenomics according to experts.

Dr. Altcoin, a prominent voice in the Pi community, remains cautiously optimistic. He noted that the project's 17.5 million KYC-verified users could represent a unique selling point if the ecosystem delivers on its promises. However, execution will be critical. "Wider adoption will depend on execution, liquidity, regulatory clarity, and the ability to convert users into active participants," he stated according to his analysis.

Risks to the Outlook

Looking ahead, Pi Network faces several key risks in 2026. The largest of these is the anticipated unlocking of 1.21 billion PI tokens, scheduled for early next year. This could introduce significant selling pressure, especially if investor sentiment remains bearish. Additionally, the concentration of supply among a small number of wallets-particularly the Liquidity Reserve wallet-heightens the risk of price manipulation or rug pulls.

The project also has a history of drawing criticism for delayed responses and unclear communication. Founder Nicolas Kokkalis' appearances at high-profile events like Consensus 2025 were met with sharp price declines, raising concerns about the team's ability to manage expectations. Meanwhile, external criticism from figures like Bybit's Ben Zhou-who labeled Pi Network a "scam"-has further eroded confidence.

Despite these challenges, there are signs of cautious progress. The recent Pi Hackathon, which saw 215 applications submitted, and the launch of a $100 million venture fund indicate the team is still attempting to build momentum. Whether these efforts are enough to turn the tide remains to be seen.