Pi Coin Faces $1 Test Ahead of 223M Token Unlock — Can Bulls Hold the Line?

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Pi Coin is currently experiencing a modest upward trend, registering gains of over 3% today. However, the digital currency remains confined within a narrow trading range, struggling to decisively breach the $0.70 resistance mark. Despite this minor price appreciation, growing apprehension surrounds the token’s future as a significant number of tokens are slated for release into the market in the coming weeks.

Today’s schedule includes the unlocking of approximately 5.8 million PI tokens. This release is a precursor to a much larger influx, with an estimated 223 million tokens expected to enter circulation within the next 30 days. This substantial increase in supply could exert considerable downward pressure on Pi’s price, particularly if robust buying interest fails to materialize.

Critical Support Level Under Scrutiny as Supply Looms

At the time of reporting, Pi Coin is trading around the $0.66 mark, a level considered crucial for maintaining bullish momentum. Market analysts suggest that if Pi can maintain a daily closing price above this point, it could pave the way for a potential rally towards the $1 threshold or even higher. Conversely, a failure to hold this support level could trigger further price declines, especially as the market absorbs the anticipated wave of newly unlocked tokens.

Since its listing in February, Pi Coin has demonstrated significant price volatility. The token reached a peak of $3 before experiencing a sharp decline to around $0.40. This downturn has been a source of disappointment for numerous early adopters and miners, particularly those who have been involved with the project since its inception in 2019 and 2020.

Factors Contributing to Pi’s Price Challenges

Several key factors are contributing to the ongoing price struggles of Pi Coin. One significant aspect is the mass selling pressure following token releases. Similar to many airdropped cryptocurrencies, Pi faces substantial sell-offs after token generation events. A considerable portion of its user base, particularly in regions such as Africa and Asia, has shown a tendency to quickly convert their holdings into fiat currency, thereby increasing the available supply in the market.

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Another crucial element is the high circulating supply of Pi tokens. Currently, over 6.9 billion Pi tokens are in circulation, with a total supply cap nearing 100 billion. When compared to the limited supply of Bitcoin (capped at 21 million), the sheer volume of Pi tokens makes ambitious price targets, such as $100 or even $10, highly improbable under the current market dynamics.

Finally, limited real-world adoption continues to hinder Pi‘s price appreciation. While the project envisions Pi becoming a widely accepted medium of exchange, its practical usage in everyday transactions remains minimal. Although a few businesses have begun accepting Pi, widespread adoption is still lacking, which restricts the utility-driven demand necessary for significant price increases.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.