Pi Network Price Crash On the Cards As Large Token Unlocks and Profit Taking May Trigger Sell-Off

Pi network price hovered below $0.20 on Wednesday following several sessions of sideways movement in the market. The Pi coin price retreated about 37% from its recent $0.29 peak to nearly $0.18 during the correction. The decline came despite optimism surrounding mainnet upgrades and easing geopolitical tensions.

Let’s uncover the top 5 reasons why Pi Coin price might fall further in the coming weeks.

Broader Market Weakness Weighs on Sentiment

The current crypto market consolidations has been reflecting the fluctuation in the global equity markets. Geopolitical tensions between Iran and the United States have kept investors on watch. 

The geopolitical tensions between the United States and Iran make investors cautious. Despite the mention of diplomatic talks, doubt still prevails.

Bitcoin price is down about 4% in the last seven days, following rejection at $72,000 and above. Most altcoins have been trading laterally, such as Ether, Solana, and XRP. This consolidation reflects broader hesitation across digital asset markets.

Upcoming Token Unlocks

Upcoming token unlocks present another potential headwind for Pi coin. An approximate of 154.2 million tokens will be released in the next 30 days. That is equivalent to 5.1 million tokens coming into circulation per day.

Selling pressure can be exacerbated on an increase in supply when it is not taken up by demands. In the past, big unlock events have caused a short-term volatility in such projects.

Fresh Deposits Suggest Profit-Taking

According to PiScan, 1.43 million tokens were deposited in a day. Kraken captured more than 60,000 Pi inflows in the same course of time. In the meantime, over 2 million tokens exchanged on OKX were registered. Analysts see these actions as a possible profit sale on the part of early investors.

Trading Volume Continues to Decline

The recent surge of Pi coin has dwindled with daily trading performance. Volume was down 34.42%  to 15.58 million in the last 24 hours. The declining attendance is usually an indicator of the dwindling optimism in the minds of short-term traders.

The current price range is still being defended by the buyers which provides a temporary stability. Nonetheless, another escape attempt can be hampered unless with greater volume.

Exchange Balances Rise Sharply

Exchange reserves are increasing by more than 2 million coins in an hour according to on-chain data. The total number of exchange holdings are now close to 473 million Pi tokens.

There are approximately 251 million in the control of Gate.io, and 144.6 million in control of Bitget. The recent listing of Kraken puts it at 1% account. Increase in exchange balance is considered to be a precursor to sale activity.

Will Pi Network Price Crash To $0.15 This Week?

The Pi coin price traded sideways on Wednesday as momentum indicators showed limited strength across the four-hour chart. Pi Network price traded at $0.1879 with a slight 1% decrease over the past 24-hours.

Pi coin price action is still in a tight range with critical horizontal resistance at 0.2000 and a critical support at $0.17.

The Moving Average Convergence Divergence indicator indicates that the four-hour picture has low bearish crossover signals.

The MACD lines are still slightly lower than the signal line, which indicates declining upside momentum in the short run.

The Relative Strength Index, on the other hand, is approximately 46, which is lower than the neutral 50.

The traders are still watching the support zone of $0.17 where the buyers may have defensive level.

A breakout below that area would put the way clear to the $0.15 level in the succeeding sessions.

Conversely, a sustained push above $0.20 may encourage a retest of $0.25 resistance as per the full Pi Coin forecast report.

If bullish momentum accelerates, upside targets extend toward the $0.30 psychological barrier.