The price of Pi Network has maintained a significant downward trajectory as buyers have remained inactive and worries about the forthcoming token unlock have intensified.
The value of Pi Network (PI) fell to a low of $0.7012, its lowest point since February 25, resulting in a staggering 76% decrease from its all-time peak. This downturn has resulted in a $14 billion loss, with its market capitalization plummeting from nearly $20 billion to $4.76 billion.
The sell-off of Pi coins persisted as traders concentrated on the imminent token unlock, which is anticipated to bring about further dilution. Reports indicate that more than 124 million Pi coins will be unlocked this month.
The number of unlocks will escalate over the following months, peaking at 233 million in July. In total, the network anticipates unlocking over 1.53 billion tokens within the next year, increasing the total circulating supply to 8.2 billion.
Pi Network is becoming one of the most inflationary cryptocurrencies, a trend that seems set to persist. This is due to the maximum supply being limited to 100 billion Pi coins, while the current circulation is 6.7 billion.
Token unlocks add to inflationary pressures by increasing the total number of tokens in circulation. Some cryptocurrencies negate these unlocks through a burning mechanism, where tokens are transferred to a non-accessible address to decrease supply.
It remains uncertain whether Pi Network plans to introduce such a burning mechanism. One potential option could involve burning any tokens that are not moved to the mainnet by the June deadline. Another possibility might involve burning fees collected from ecosystem activities.
It could be that Nicolas Kokkalis, co-founder of Pi, will address these issues in the project’s inaugural X Space. He is anticipated to unveil the roadmap and discuss forthcoming features.
The price of Pi Network has also faced challenges due to a scarcity of exchange listings. No significant tier-1 exchange has made the token available since its mainnet launch in February.
Technical Analysis of Pi Network Price
The four-hour chart reveals that the price of Pi coin has been in a continuous downtrend over recent months and is nearing its all-time low. It continues to trade below the 50-period moving average, indicating that bearish sentiment prevails for the time being.
On a brighter note, Pi Network has established a falling wedge pattern, a typical bullish reversal indicator. With the two trend lines close to converging, it may potentially see a rebound in April, possibly retesting the psychological barrier of $1. All it takes is a single catalyst, like a major exchange listing, to propel its recovery.