Pi Network Price Flashes Warning Sign Ahead of $10M Unlocks

Pi Network (PI) is trading in the green today, July 3, amid a recovery across the broader crypto market. At press time, Pi Network price stood at $0.50 with a modest 1.63% increase in 24 hours. Despite these gains, bearish pressure is still facing this altcoin after it formed a bear flag pattern ahead of more than $10 million worth of unlocks tomorrow.

Is Pi Network Price Headed for a 30% Crash

Pi Network price has created a bearish flag pattern, which usually confirms that a downtrend is set to continue after a short relief rally. The bear flag’s pole formed in late June when the Pi Coin price fell from $0.66 and recorded a swing low at $0.47.

The 28% fall from the June 25 swing high of $0.66 represents the height of the flag pole. If the price falls below the lower boundary of the ascending channel that currently shows a brief relief rally, it is possible that another 28% decline to $0.351 will happen.

In most cases, bear flag confirmations happen when the buy-side pressure marking the flag’s upward trend is not strong enough, and sellers re-emerge and force the price to drop. However, if the Pi Network price can break the upper boundary of the ascending channel, it will confirm strong buy-side pressure that may invalidate this bearish thesis.

As press time, both the RSI and the CMF indicators were attempting to move above the mean level of 50. If these indicators face rejection at the mean level, PI will likely lose the upward momentum and drop. However, considering that the crypto market is up today, buyers could push these indicators to bullish territory, and Pi Coin may avoid the 30% crash.

Meanwhile, a recent CoinGape analysis noted that whales are moving Pi Coins from exchanges, which could be a good thing for the price. If these withdrawals continue, PI may avoid crashing to $0.351.

Upcoming $10M Unlocks Weigh on Pi Coin Price

Concerns are rising about the upcoming unlocks that could have a bearish effect on the Pi Network price performance. In less than 24 hours, more than 19 million PI tokens, valued at nearly $10 million at the current price, are set to be unlocked and flood the market.

Data from PiScan also shows that in the next 30 days, Pi Network will have more than 300 million token unlocks, with an average of 10 million coins added to the supply every day.

These unlocks may be the trigger that forces the Pi Coin price to lose critical support in the bear flag pattern, causing the price to drop below the psychological level of $0.40. Moreover, these unlocks have been the main factor behind a bearish Pi Network price forecast in the past if the demand to absorb these newly released tokens is not present.

Open Interest Surges Despite Bearish Pressure

Despite the bearish signs that are impacting the performance of Pi Network, the open interest, showing the level of futures trader interest towards the coin, has risen significantly. Data from Coinalyze shows that this metric stands at $23.19 million after a gradual surge.

If the open interest is rising alongside the Pi Coin price, it usually has a bullish effect on the price, by showing that traders are opening long bets on the coin. However, this rise could also be bearish if the price faces weakness and starts dropping, which may cause a long squeeze.

In conclusion, the Pi Network price is currently at a crucial point after it formed a bearish flag right before more than 19 million tokens flood the market through unlocks. This pattern shows that if buyers fail to step in now, Pi Coin may crash by 28% and reach $0.351.