Pi Network Drops to New All-Time-Low —Why the Token Could Fall Further

PI price drops to an All-Time-Low of 0.39 USD in the early morning trading session on Friday in Asia, increasing concerns about the downward trend in the market.

Although it has slightly recovered to trade at 0.40 USD at the time of writing, this price drop reflects increased selling pressure before 150 million PI tokens are set to be unlocked, expected to occur in the next 30 days.

150 million PI tokens prepare to challenge market limits

According to data from PiScan, 150 million tokens, valued at 64 million USD at the current market price, are expected to be unlocked in the next 30 days.

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Such a large-scale token unlock puts significant downward price pressure on crypto assets, especially in a low-demand environment. Unless demand for PI increases strongly and sustainably, the altcoin's downward trend may continue or even accelerate.

Technical indicators also paint a similarly gloomy picture. The Aroon Down Line, which measures the strength of recent downward trends, is currently at 100% on PI's daily chart. This indicates a strong decline and sellers are completely in control.

Additionally, the price decline prospects are further reinforced by the recent crossover observed on PI's Moving Average Convergence Divergence (MACD) indicator. Metrics from the PI/USD daily chart show the MACD line (green) has crossed below the signal line (orange) in today's session.

This crossover is a classic confirmation of momentum change favoring bears, indicating that selling pressure has overcome any remaining bullish sentiment.

Pi drops, but oversold RSI could bring a short-term recovery

With the large token release approaching, PI may struggle to regain its position unless sentiment improves and demand increases strongly enough to absorb the upcoming supply. If demand remains low, PI could return to its All-Time-Low of 0.39 USD and decline further.

However, there is one point to note. PI's Relative Strength Index (RSI) is at 32.02, close to the 30 level indicating oversold conditions.

The RSI indicator measures an asset's overbought and oversold market conditions. It oscillates from 0 to 100. Values above 70 indicate an asset is overbought and may decline, while values below 30 suggest the asset is oversold and may recover.

Although this indicates the downward price momentum still dominates, a short-term recovery could occur if buyers intervene to protect the current price level. In that case, PI price could rise to 0.46 USD.