- Pi Network is under pressure as 3 million PI tokens move to exchanges and nearly 200 million unlocks approach, raising fears of increased selling.
- Despite a Protocol 22 upgrade planned for April 27, weak price action suggests bearish sentiment may continue in the short term.
Pi Network is under fresh selling pressure after key on-chain data and upcoming token unlocks signaled potential weakness ahead. Despite new ecosystem updates, PI price has failed to respond positively, leaving traders cautious.
PI Fails to Follow the Market Recovery
Most major cryptocurrencies, including Bitcoin, have posted gains recently as global sentiment improved following easing geopolitical tensions. However, Pi Network has moved in the opposite direction.
PI dropped by around 4% over the past week. Its market capitalization now sits near $1.75 billion, a steep fall from nearly $20 billion recorded in February last year. This shows continued weakness despite broader market strength.
3 Million PI Shift to Exchanges Signals Selling Pressure
One of the most concerning signals for traders is the movement of tokens toward centralized exchanges. In the last 24 hours alone, about 3 million PI tokens were transferred from self-custody wallets to exchange platforms.
Total exchange balances have now climbed to nearly 508 million coins.
This trend is often viewed as bearish because it suggests holders may be preparing to sell rather than store long-term. When supply on exchanges increases, downside pressure usually rises if demand does not match it.
Heavy Token Unlocks Add More Supply Risk
Another key concern is the upcoming wave of token unlocks. Data shows that nearly 200 million PI tokens will be released into circulation within the next 30 days.
The largest single unlock is expected on May 1, when 20.9 million tokens will enter the market.
While unlocks do not automatically cause price drops, they often increase short-term volatility. Traders may choose to sell newly released tokens, adding further pressure if demand remains weak.
Protocol 22 Upgrade Brings Hope for Stability
Despite the bearish signals, there is a potential catalyst ahead. Pi Network is preparing for a mandatory Protocol 22 upgrade, with a deadline set for April 27.
Some community members believe the upgrade could strengthen the network by improving stability and paving the way for full smart contract functionality.
If successfully implemented, this update may restore confidence in the ecosystem and support longer-term development.
Outlook Remains Uncertain
Pi Network currently sits at a critical point. On one side, rising exchange balances and heavy token unlocks suggest continued pressure. On the other hand, upcoming protocol upgrades may offer a foundation for recovery.
For now, traders appear cautious as they wait to see whether demand can absorb the growing supply in the market.
ALSO READ: Pi Network Launches Subscription Smart Contracts on Testnet for Recurring Payments
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