3 Reasons Pi Network Price Is Crashing Despite Ongoing Protocol Upgrades

Pi Network price has dropped by 19% since April 27, and it trades at $0.143 today, May 27. This drop comes despite Pi Coin completing two upgrades in the last four weeks, and another one is happening on June 2. But these events are only causing short bursts in price, and Pi Coin is now 8% shy of its all-time high, suggesting there are more reasons that are making buyers steer clear while bears tighten their grip.

Ongoing Token Unlocks Create a Supply Overhang

Pi Network releases several million tokens every month. It released 64.1 million in May, and 143 million are going to be released in June. Pi Scan shows that 1.77 billion coins are going to be released between May 2026 and May 2027.

PI price cannot go up if there is an average of 17 million coins that join the supply every month, when there are no people buying. That is why the protocol 22, 23, and 24 upgrades are not preventing the price from falling because the demand is low when the supply keeps rising.

1.08 million PI left exchanges in the last hours, but 18.2 million coins will also be unlocked today. That means there is a deficit of 17.2 million coins today that will dilute any buying that could have moved the price up.

Pi Network price needs to drop by only 8% to get to a record low. The 64 billion new coins that are unlocking in May might cause this drop.

Protocol Upgrades Are Not Driving Sustained Gains for Pi Network Price

Pi Network price only goes up for a short time after an upgrade happens, and then reverts to a downtrend. This happened on April 27 when protocol 22 upgrade pushed the price from $0.175 on April 27 to $0.199 on April 29.

Pi Coin price also rose by 6% after the May 20 protocol change, and it reached $0.155 before it reverted back to $0.143 after two days.

This pattern on April 27 and May 20 will likely repeat after protocol 23 on June 2. Pi Network will likely go up two days after the upgrade happens, but it will later resume its journey down to $0.131.

The Pi Core team had said the protocol changes would bring smart contracts to Pi Coin, and when this happens, people might start creating decentralized applications here, and that is when a sustained rise will happen.

Weak Market Sentiment

The crypto market is in fear, and this sentiment is making Pi Network price crash even when protocol changes are happening. The crypto fear and greed index shows a reading of 25 that suggests extreme fear that is pushing out bulls and giving bears a better grip.

Pi Network price goes up when the index is high, as seen on May 5, when the index reached 50 and Pi Coin went from $0.174 to $0.188.

This reading needs to move from the extreme fear territory of 25 and cross past the neutral reading of 50 for Pi Network to avoid crashing further to the record low of $0.131. This weak sentiment also prevented Pi Coin price from rising after OKX listed PI for US users.

Pi Network Price Chart Signals Drop to Demand Zone

Pi Network price fell to an all-time low of $0.13 on February 11. This fall established support between $0.132 and $0.137, and this zone is where new buyers might step back in because an all-time low is also a psychological support level.

Pi Coin will go to $0.176 if it bounces from $0.13. The stoch RSI has a reading of 6, which shows PI people are selling aggressively, and there is very weak momentum.

But this stoch RSI reading might support a bullish long-term Pi Network price prediction because sellers might become exhausted and create room for buyers to come back.

The AO bars that are red and negative are warning that Pi Network price might still go below $0.13.