The price of Pi Network (PI) is facing mounting pressure as it hovers around $0.60, with analysts warning that the token could fall by more than 35% in the near term. The main driver behind the bearish outlook is a significant token unlock schedule, which may overwhelm current demand and lead to a substantial drop in market value.
A Supply Surge That May Shake the Market
According to recent on-chain data, over 105 million PI tokens are scheduled to be unlocked this month. This figure pales in comparison to the 1.57 billion tokens set to be released within the next 12 months. At current prices, that represents nearly $954 million in potential selling pressure, or over 4 million tokens daily.
The core concern is a classic supply-and-demand imbalance: a rapid increase in token supply without a proportional rise in demand typically results in price depreciation.
Bearish Technical Signals Support the Forecast
As reported by market analysts, PI has already broken below its 50-period moving average, a key technical support level. The token is now approaching $0.6085, a previously tested support zone. If this level breaks, analysts expect a downside move toward $0.40, implying a decline of over 35% from current levels.
This forecast is consistent with broader sentiment in low-liquidity altcoin markets, where major unlocks often lead to short-term price declines.
Can the Crash Be Avoided?
Despite the warning signs, the Pi Network Foundation has tools at its disposal to potentially mitigate the risks:
- Token Burns: The foundation currently holds over 70 billion PI tokens, valued at $40 billion. By implementing a burn mechanism, the team could reduce circulating supply and offset dilution effects.
- Ecosystem Growth: Increasing adoption of decentralized apps (dApps) on the Pi platform or using transaction fees to burn tokens could help stimulate demand and limit the impact of the unlocks.
However, no formal announcement has been made regarding such mechanisms, and until concrete actions are taken, investors may remain cautious.
While Pi Network maintains a strong community and ambitious goals, the upcoming token unlocks present a serious short-term threat to price stability. Without an aggressive supply control mechanism or major increase in adoption, a 35%+ drop toward $0.40 appears likely in the coming months.
