Is a Pi Network Crash Ahead As 272M Coins Unlock in July

Pi Coin price is on the brink of a major bearish breakdown if it loses a crucial support level. A potential catalyst for this Pi Network crash will be this month’s token unlock, which is its biggest one until 2027.  The Pi Network value trades at $0.4565 today, July 7, down by 72% from its highest level in May and much lower than its all-time high. 

Pi Coin Crash Possible Ahead of 272 Million Unlocks

Pi Coin price faces a major risk this month that could push it much lower in the coming months. Data shows that the amount of tokens in circulation will increase significantly this month as the network unlocks over 272 million tokens currently worth over $106 million. 

This token unlock occurs when the Pi Foundation releases tokens to the market, thereby increasing the number in circulation. These unlocks increase the circulating supply, which can negatively impact the price, particularly when demand is limited. 

This month’s token unlock is notable because it will be the highest one until December 2027, when over 432 million tokens will be unlocked. Following this unlock, monthly releases will occur over the next three consecutive months, after which they will resume in December, when over 472 million tokens will be released. 

Most cryptocurrencies unlock their tokens periodically. Pi Network’s risk is the volume of the tokens it plans to release over the years. CoinMarketCap data shows that Pi has a maximum supply of 100 billion tokens and a circulating one of 7.6 billion, meaning that 92.7 billion coins will be released in the future. 

The ongoing token unlock likely explains why the Pi Coin price has remained under pressure after major developments. For example, the network launched the $100 million ecosystem fund in May. It also launched the Pi Network AI Studio, enabling users to build AI applications easily. 

Pi Network Price Technical Analysis

The daily timeframe chart shows that the Pi Coin price has remained under pressure in the past two months as buyers have remained in the sidelines. On the positive side, there are signs that it has formed a double-bottom pattern at $0.40 and a neckline at $1.6466. This pattern points to a potential rebound as long as it is above the double-bottom level.

However, Pi Network remains below the short and medium-term moving averages, which are providing substantial resistance. Therefore, a drop below the double-bottom pattern at $0.40 will point to more downside, potentially to the all-time low of $0.0062, down by over 90% from the current level. 

The bearish Pi Network forecast will become invalid if the token rises above the key resistance at $0.6642, the highest swing on June 25. A surge above that level will point to more gains, potentially to $1. 

Pi Network was launched with a lot of promise, but its price has been a big disappointment as it has continued falling. Technical analysis suggests that it is on the verge of a major crash if it loses the key support level at $0.40.