Sell pressure escalates for PI Network as potential token unlock looms, potentially impacting token value
Here's the deal with Pi Network:
Pi's current price dance is squeaking within a tight sideways range, teetering between $0.59 and $0.67 since mid-April. The present price hovers around $0.58, and a breakdown toward lower realms is becoming a real concern.
The RSI indicator stands at 38, drifting below the neutral 50 level and nudging towards oversold territory. MACD also signals weariness, suggesting a possible shift in momentum toward the bearish side. Although the MACD line still hugs above the signal line, it looks like they're inching towards a bearish crossover.
Why is Pi Network struggling to fly high? It's not just about the technical indicators. The fundamental dilution risk is weighing heavily on Pi's circulating supply. In April, 21.4 million Pi tokens were released, which amounts to approximately $12.3 million at current prices. The growing fear is that heavier future unlocks are in sight. The monthly unlock trend shows a consistent rise in supply over time, with an expected average of over 131 million Pi/month over the next year.
Unless a major update is rolled out or the PI Foundation decides to torch a significant chunk of their nearly 72 billion Pi (71,991,181,249 π) stash, the downward pressure on Pi seems set to persist.
A glimmer of hope? Rumors swirl about Pi Network's Ad Network getting activated for all ecosystem apps. This potentially could breathe life into the network by creating practical uses for Pi, increasing demand, and possibly reducing selling pressure. It might also draw new participants to the network, provided the actual implementation and adoption rates are promising.
Nonetheless, analysts are divided on Pi's future. Pessimistic forecasts predict a slide to $0.5252 by late 2025 due to escalating bearish sentiment[3][5]. The RSI indicators hint at oversold conditions, suggesting negative trader sentiment[5]. Meanwhile, optimistic predictions feature a May 2025 rally driven by Consensus Summit exposure and HTX listing rumors[2][5]. Ultimately, whether the Ad Network will be the key that unlocks sustained price stability remains to be seen. It all comes down to whether this network can demonstrate tangible economic activity beyond fleeting trading speculation.
The fine print:The potential struggles in Pi Network's price are linked to multiple critical factors, while the impact of the Ad Network remains tentative but potentially market-moving:
Bearish Headwinds:1. Token Unlock Avalanche: An upcoming release of 212 million Pi coins by August 2025 threatens to flood markets, amplifying selling pressure[4][5]. This fits with historical patterns where large unlock events often precede price declines.2. Moody Market Vibes: The bearish wave is gathering strength, with experts forecasting a drop to $0.5252 by late 2025 given that liquidations intensify, despite current prices bobbing around $0.61-$0.68[3][5]. The RSI indices suggest oversold conditions, reflecting grim investor sentiment[5].3. Questions Galore: Delays in migration processes and the lack of major exchange listings (beyond HTX whispers) contribute to investor uncertainty[3][5]. The gap between developer promises and actual practical implementation continues to be a point of concern.
Ad Network Winds of Change:Although not explicitly detailed in sources, the Ad Network's activation could theoretically:- Boost Practical Use: By fostering real-world use cases for Pi, potentially enhancing demand.- Less Selling Pressure: If ads yield earnings in Pi, users might choose to hoard rather than sell coins.- Wealthier Hive: Enhanced visibility through ads might swell the user base, but this hinges on actual implementation and adoption rates.
Current perspectives among analysts remain split, with grim projections ($0.5252 by 2025[3]) butting heads with rosy scenarios featuring a May 2025 rally driven by Consensus Summit exposure and HTX listing speculation[2][5]. Whether the Ad Network will plug the holes in the dam by showcasing real-world economic activity beyond fleeting trading hype rests on its shoulders.
- Despite the Ad Network's potential to activate for all ecosystem apps and increase demand for Pi tokens, investors remain concerned about the token's circulating supply, particularly the upcoming unlock of 212 million Pi coins by August 2025.
- The RSI and MACD indicators suggest oversold conditions and bearish sentiment among investors, increasing the likelihood of a price decline towards $0.5252 by late 2025.
- The bearish wave in the crypto market, coupled with delays in migration processes and the lack of major exchange listings, continues to contribute to investor uncertainty about Pi Network.
- The activation of the Ad Network could boost practical use and lessen selling pressure of Pi tokens by providing users with earnings in Pi through ads, thereby potentially increasing hoarding rather than selling.
- Whether the Ad Network will demonstrate tangible economic activity beyond fleeting trading speculation and help stabilize Pi's price remains uncertain, as the actual implementation and adoption rates are crucial factors to consider.
- Technology and finance are intertwined in the Pi Network, and investing in it requires careful consideration of both technological progress and market conditions, particularly in light of the upcoming token unlock event.
