Pi Network (PI) Crashes by 70% in 2 Months: Is There Any Hope Left?

TL;DR

• PI has plunged by double digits since mid-May, with millions of tokens set to unlock soon. This looming influx increases the selling pressure, which could be among the main factors behind the continued decline.

• While some analysts predict further losses, others remain optimistic and expect a surge toward $5. Meanwhile, PI’s RSI has dipped to near 30, signaling oversold conditions, which could be a precursor of a bullish reversal.

PI’s ‘Main Problem’

Pi Network’s PI remains one of the poorest performers in the crypto market. The token, which became tradable on certain exchanges in February this year, has seen its price collapse by approximately 70% since mid-May. Currently, PI is worth around $0.45, and according to some industry participants, the pullback might intensify in the short term.

X user Zoe believes the asset’s “main problem“ lies in its massive supply and the constant release of new tokens. More than 246 million coins are set to unlock over the next 30 days, with around 16.4 million PI scheduled on July 10 alone. This influx gives investors the chance to finally offload their tokens, adding significant selling pressure and fueling the ongoing downward momentum.

Zoe thinks that one factor that might stop PI’s free fall is the potential introduction of a burning mechanism. Such a program takes tokens out of circulation by sending them to an inaccessible wallet. Fundamental principles of economics dictate that a reduced supply, combined with non-declining demand, should result in price appreciation. 

Some people commenting on the post agreed with Zoe’s idea. Others claimed the lack of a burning mechanism isn’t the only problem PI has, outlining the need for better communication with the community and the implementation of a buy-back system. 

Price Forecasts

The community seems split regarding PI’s next potential targets. Some, such as X user Crypto Cloud, are on the bearish side, suggesting that the asset’s recent performance has shown “the true meaning of rock bottom.”

Others, like MOON JEFF, stand in the opposite corner. The analyst, who touches upon the matter quite frequently, argued that those selling PI at its current levels may be “big losers.”

“All you have to do is wait for $5 and sell. When the altseason finally comes, the PI pumps will be crazy,“ he envisioned.

Meanwhile, the asset’s Relative Strength Index (RSI) has slipped to almost 30, which refers to oversold territory and is typically considered a bullish signal.