- Pi Network’s price has fallen below $1 despite a broader crypto market recovery, primarily due to increasing supply pressure from token unlocks, lack of major exchange listings, and concerns over centralization.
- Technical indicators suggest continued selling pressure, with key support at $0.70 and resistance at $1.00.
The cryptocurrency market has been on an upward trend recently, but Pi Network seems to be moving in the opposite direction. The price of Pi has dropped below the $1 mark, currently trading at $0.92 after a 4% decline in the past day. This downturn comes despite an overall recovery in the broader crypto market, leaving many investors questioning why Pi is struggling.
Supply Pressure Driving Prices Down
One of the key factors behind Pi Network’s price decline is the increasing supply pressure. According to data from Pi Scan, nearly 99.3 million Pi tokens—worth approximately $91 million at current prices—are set to be unlocked over the next 30 days. This means that an average of 3 million new tokens will enter circulation daily, with the largest single-day unlock of 6.8 million tokens expected on April 3.
Further projections indicate even greater unlocks in the coming months, with 115.57 million Pi tokens expected to be unlocked in April, 182 million in May, and 222 million in June. As the market struggles to absorb this supply, the price could face additional downward pressure.
Lack of Exchange Listings Dampens Sentiment
Investor sentiment surrounding Pi Network has also been negatively impacted by the uncertainty of exchange listings. Many Pi enthusiasts were hoping for a listing on major exchanges like Binance, but no confirmation has been provided. This lack of clarity has frustrated investors and dampened interest in the token.
Concerns Over Centralization
Another concern affecting Pi Network’s price is the centralization of its network nodes. Unlike traditional blockchains where independent validators run nodes, Pi Network’s SuperNodes are managed by the Pi Core Team. While the number of these nodes has increased from three at launch to 42, the selection process remains unclear. This lack of transparency has raised concerns among investors and developers about the project’s long-term decentralization.
Will Token Burns Help Stabilize Prices?
Some analysts suggest that burning tokens could help stabilize Pi’s price. On March 24, cryptocurrency analyst Dr. Altcoin proposed reducing the total supply by 60–100 million Pi coins to balance the market. Pi Network recently burned 10 million tokens, lowering the circulating supply to 6.77 billion. However, this action has had little impact on price stability so far.
Technical Analysis: More Downside Ahead?
From a technical perspective, Pi is showing a weak trend. The price is struggling to maintain support above $1, with $0.70 acting as a key support level. If Pi falls below $0.85, it could drop further to the $0.70 region. Meanwhile, resistance remains at $1.00, with a potential upside target of $1.34 if buyers step in to push the price higher.
Indicators such as Bollinger Bands show that sellers are currently in control, while the relative strength index (RSI) at 43.27 suggests bearish momentum. Moving averages and the MACD indicator also point toward continued selling pressure.
While the broader crypto market is recovering, Pi Network continues to face challenges due to supply pressure, lack of exchange listings, and centralization concerns. Unless significant buying pressure emerges or the project addresses these issues, Pi’s price may remain under pressure in the coming months.
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