PI Network’s Price Plunge: What’s Behind the Token Sell-off?

PI Token Faces Potential Price Decline Amidst Supply Concerns

PI Network’s token (PI) is stuck in a narrow trading range, but signs point to a possible drop. Since mid-April, the price has hovered between $0.59 and $0.67.Now, it’s testing the lower limit at $0.58, hinting at a potential fall.

Technical indicators aren’t looking good. The RSI is at 38, below the neutral 50 mark, and close to oversold territory. The MACD also shows weakening momentum. While the MACD line is slightly above the signal line, a bearish crossover could be on the horizon, suggesting a shift to a downward trend.

The price dip and technical weakness may stem from supply concerns. This month, 21.4 million PI tokens were unlocked, worth about $12.3 million.While this unlock is relatively small, investors fear larger future unlocks. The monthly unlock trend shows a steady supply increase, with an expected average of over 131 million PI per month next year.

Without a major update or a important token burn by the PI Foundation, which holds nearly 72 billion PI, the token’s price may continue to face downward pressure.