The Pi Network has seen its token price decrease significantly, dropping to $0.16 this week, marking its lowest point in two weeks. As the market grapples with a broader downturn, the recent drop comes just ahead of a substantial unlock of 171 million tokens in February, following the release of over 139 million tokens in January.
The dramatic decline in Pi Coin (PI) has resulted in a staggering 94% decrease from its all-time high, with the market capitalization plummeting from nearly $20 billion to approximately $1.4 billion. The primary driver behind this crash is the combination of rising supply and diminishing demand. Recent data from CoinMarketCap indicates that the 24-hour trading volume has fallen to just $9 million.
The ongoing token unlocks are poised to exacerbate the situation, as over 1.3 billion tokens are scheduled to be unlocked in the upcoming year, averaging more than 17.3 million tokens each month. On a particularly impactful day, nearly 2 million tokens moved onto exchanges, predominantly to OKX, followed by Gate and Bitget. This pattern of exchange inflows is often indicative of holders looking to sell their assets.
In addition, the largest Pi Network whale has ceased purchasing activity, with their last acquisition occurring 17 days ago, when 1.2 million tokens were transferred from OKX to self-custody. Currently, this whale possesses over 384 million tokens valued at over $64 million, a significant portfolio that has not seen new additions in recent weeks.
Furthermore, the Pi Network faces pressing challenges, including an underdeveloped ecosystem and a lack of new exchange listings. The project is also marked by a high degree of centralization, with the foundation controlling more than 90 billion tokens worth over $18 billion.
From a technical standpoint, the price analysis for Pi Coin reveals a strong downward trajectory. The price has breached the critical support level of $0.1928, its lowest swing since mid-December. The coin remains below both the 50-day and 100-day Exponential Moving Averages and has slipped beneath the Ichimoku cloud indicator. The Relative Strength Index is now in the oversold territory, while the Average Directional Index has risen to 47, suggesting that the downward momentum is gaining strength. Analysts suggest that the price could continue to decline, potentially reaching an all-time low of $0.1500.
