Token Unlockings and Price Impact of Pi Network Today, around 5.8 million PI Network tokens are scheduled to be unlocked, followed by a much larger wave of 223 million tokens in the next 30 days. However, this massive influx of new units into the market may intensify downward pressure on the price of PI, especially in the absence of a strong enough buying demand to absorb it. Source: CoinMarketCap Currently, PI is trading around $0.66, a critical level for bullish sentiment.
Therefore, if the price manages to close above this threshold on the daily chart, analysts suggest it could pave the way for a potential rise towards $1 or more. However, a failure to maintain this support could lead to further declines, exacerbated by these massive unlockings. Factors Weighing on Token Price Several factors explain PI’s persistent price struggles: Massive post-unlocking sales: Like many cryptocurrencies distributed for free, PI faces significant sales after token generation events.
A substantial portion of its user base, particularly in Africa and Asia, has been quick to offload their holdings, leading to additional selling pressure. Like many cryptocurrencies distributed for free, PI faces significant sales after token generation events. A substantial portion of its user base, particularly in Africa and Asia, has been quick to offload their holdings, leading to additional selling pressure.
High circulating supply: Currently, PI has a circulating supply of over 6.9 billion tokens, with a total cap close to 100 billion. Compared to Bitcoin’s limited supply of 21 million, PI’s large token volume makes high price expectations, like $100 or even $10, very unlikely in the current conditions. Currently, PI has a circulating supply of over 6.9 billion tokens, with a total cap close to 100 billion.
Compared to Bitcoin’s limited supply of 21 million, PI’s large token volume makes high price expectations, like $100 or even $10, very unlikely in the current conditions. Limited real-world adoption: Although PI’s vision includes becoming a widely used medium of exchange, its actual usage remains minimal at present. Only a few businesses accept PI, and broader adoption is lacking, thus limiting demand based on the token’s utility.
Significant Challenges for the Pi Network Therefore, PI continues to face significant challenges as new tokens flow into the market in the coming weeks. If the price manages to hold above $0.66, this could pave the way for a potential bullish rally towards $1 or more. However, a failure to sustain this critical support may lead to further declines, exacerbated by these massive unlockings.
Ultimately, investors will need to closely monitor market developments in the days ahead. More on this topic :
