Pi Token Drops 1.57% Amid Whale Activity and Sell Walls

Pi Token, the cryptocurrency associated with the Pi Network, has recently experienced a decline in value, dropping to $0.46, which represents a 1.57% decrease. This downturn has puzzled many within the community, as it occurred despite a period that seemed promising for growth. The unusual trading pattern observed suggests that buy orders outnumber sell orders, yet large sell walls have been strategically placed at $0.459, while significant buy orders are waiting just beneath at $0.457. This tight range, coupled with sizable opposing orders, indicates potential manipulation, possibly an effort by large holders to temporarily push the price down and accumulate more tokens at a discount.

This theory gained traction following the July 4 unlock of 270 million Pi tokens. While some selling pressure was anticipated from the release, the size and timing of the transactions appear too precise to be dismissed as routine. Observers suggest that this event might have been used by well-capitalized actors, often referred to as whales, to create uncertainty, discourage retail holders, and quietly buy back in at lower prices. The crypto market has seen similar patterns before, where sudden drops shake out smaller investors just before a significant rally. While Pi Network still enjoys strong support among long-term believers, the latest activity serves as a reminder for users to stay vigilant, especially during periods of high token movement and ambiguous market behavior.

Pi Network's token, PI, has experienced a decline in value despite significant buying activity from large investors, commonly referred to as whales. The token's price has fallen below $0.50, extending a downward trend from the previous week. This decline is notable given that top whales have acquired over 2 million PI tokens in recent transactions. The technical outlook for PI remains bearish, with a potential retest of the $0.40 mark as bullish momentum fades. The rising wallet balances of centralized exchanges (CEXs) suggest increased supply pressure, which could be contributing to the token's decline. Data from PiScan indicates that CEXs' wallet balances have risen to 373.60 million PI tokens, with a net inflow of 2.41 million PI tokens in the last 24 hours. This increase in deposits on CEXs implies that investors are preparing to sell their holdings, adding to the selling pressure.

Despite the bearish sentiment, there have been significant whale transactions in the last 24 hours. Two large transactions involved the withdrawal of over 2 million PI tokens from the OKX exchange. The whale "GASWBD…J2AODM" withdrew 1.66 million PI tokens, while the whale "GBVD3M…4ZLRVM" acquired 400,000 PI tokens. Notably, the whale "GASWBD…J2AODM" has acquired 7.92 million PI tokens in the last five days, indicating a high level of confidence in the token's potential. The technical indicators for PI are currently muted, with the Relative Strength Index (RSI) hovering around 33 on the daily chart, slightly above the oversold boundary. A dip below the oversold boundary at 30 would signal increased selling pressure. The Moving Average Convergence/Divergence (MACD) indicator displays a declining trend in the MACD and signal lines in the negative territory. However, a decrease in red histogram bars hints at a potential crossover, which sidelined investors could consider a buy signal.

To restart an uptrend, Pi Network must overcome Friday's bearish candle with a daily close above the $0.50 psychological mark. In such a scenario, the uptrend in PI could reach the $0.54 mark, last tested on June 29. The current bearish bias suggests that the token may continue to decline, potentially retesting the $0.40 mark. Investors and traders should closely monitor the technical indicators and market sentiment to make informed decisions about their PI holdings.