The price of Pi Network is currently at a pivotal point. A series of token unlocks are underway, and these are expected to play a significant role in how Pi performs moving forward. These unlocks will continue until May of next year, and they’re currently adding downward pressure to the price of this meme coin. Even attempts to bounce back from the $0.60 support level have been unsuccessful. Let’s dive into the details and see if the upcoming release of 212 million tokens will spark a price surge or trigger a potential crash.

Pi Network Price Impact Amid 212M Unlocks

According to data from PiScan, a substantial 212 million Pi Network tokens are slated to enter circulation over the next month. At the current price, this amounts to roughly $130 million worth of Pi. Breaking it down, that’s an average of about 7 million PI tokens hitting the market each day until May 17th.

These unlocks could put downward pressure on the price of Pi Network. Essentially, increasing the supply of tokens when demand is not keeping pace can be tricky. This could lead to a sharp reversal in the token’s trend, or potentially, it might just hover around its current low range if there isn’t enough buying interest to absorb all these new tokens.

However, crypto analyst Spock on X (formerly Twitter) points out that based on the current PI tokenomics, a complete price crash might be avoided even with these continued unlocks. Spock highlights a key factor: over 90% of Pi addresses hold fewer than 100 PI tokens. This suggests strong interest from everyday retail investors. He suggests that if demand for Pi Coin remains robust, it could act as a buffer against a crash.

Despite this optimistic outlook, it’s worth noting that 23 large ‘whale’ addresses hold over 12 million PI tokens. That’s a significant amount – more than 90% of the 13.2 million tokens currently circulating on the mainnet. This concentration of tokens means these whales have the potential to really move the price if they decide to sell, painting a potentially bearish picture for Pi Network’s price moving forward.

So, the bottom line is this: these token unlocks could indeed trigger a price crash for Pi Network if demand doesn’t pick up to soak up the increased supply.

Pi Network Technical Analysis

Currently, Pi Network is trading around $0.61, showing a modest 2% increase over the last 24 hours. This slight upward movement hints at some building bullish momentum, which could mean we’ll see increased volatility in Pi Coin’s price as we head into the weekend.

Looking at the two-hour price chart, however, there are signals that the recent uptrend might be losing steam and potentially reversing into a downtrend. This shift to a downtrend would be more likely if Pi Coin dips below the $0.61 support level – that’s the key neckline to watch.

On a brighter note, the Relative Strength Index (RSI) is currently trending upwards. This suggests that buyers are starting to re-enter the market, which could potentially give Pi Coin price the boost it needs to continue its uptrend. Traders should keep an eye out for the RSI crossing above 50; this would be a stronger sign of a change in market structure towards the positive.

Taking into account the upcoming release of 212 million PI tokens, there’s a real possibility that the price of Pi Network could fall further. This is largely due to the expected increase in supply, while demand may not rise at the same rate. Adding to this, the two-hour price chart is showing signs of strengthening bearish momentum, suggesting a potential drop down to the $0.44 level.

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muthoni

Muthoni Mary is your guide to the crypto market, a seasoned analyst and writer with over three years under her belt. She expertly breaks down the world of blockchain – from the latest trends to price swings and market forces. With a knack for technical analysis and a deep dive into on-chain metrics, Muthoni delivers insightful, data-driven content to help you navigate the exciting, yet sometimes turbulent, waters of digital assets.

Disclaimer: Please remember, the views expressed here are those of the author and just their opinion, market conditions are always changing. Always do your own research before hopping into the crypto market. Neither the author nor the publication can be held responsible for any personal financial losses you may incur.