Pi Coin Plunges 5% After Token Unlock – Is a Breakout to $2 Still Possible?

Joe M
Picoins

The price of Pi Coin (PI), the native cryptocurrency of the Pi Network, has plummeted by 5% in the last 24 hours, now trading at $0.923. This decline follows a recent token unlock, triggering strong selling pressure. Additionally, daily trading volumes have dropped by 30.56%, slipping below $200 million. Despite these bearish signals, analysts remain optimistic, predicting a potential rally to $2.

Pi Coin Faces Increased Exchange Deposits

Over the past week, Pi Coin has corrected 22% after failing to sustain its gains above $1.20. This has led to a sharp decline in its market cap, causing it to slide from the 11th to the 23rd position in the crypto rankings. A major factor behind this downward trend is the influx of PI tokens into centralized exchanges (CEXs).

Recent data shows that nearly 8 million PI tokens have been deposited on CEXs, increasing the available supply and intensifying sell-offs. The total number of PI tokens on exchanges has surged to over 338 million, raising concerns about potential price volatility. Some analysts suggest that the PiCore Team (PCT) should consider burning 60 to 100 million tokens from circulation to stabilize prices.

Also Read: Pi Network’s SuperNode Controversy Sparks Decentralization Debate – Is Pi Truly Decentralized?

Technical Indicators Suggest Potential Reversal

Despite the current downtrend, some market analysts believe a price reversal may be on the horizon. A recent TradingView chart by Coinvo highlights a Triple ZigZag formation for the PI/USDT pair on Bitget, a pattern often associated with market trend reversals. Elliot wave analysis suggests that PI may soon experience upward momentum.

TraderFy, another market analyst, has shared a bullish outlook, predicting a falling wedge breakout for Pi Coin. According to him, if PI breaks out of its current resistance zone, price targets of $2.00 and $2.38 could be achieved in the coming weeks.

Where Is Pi Coin Heading Next?

While short-term price action remains bearish, technical indicators hint at a possible recovery. If Pi Coin can reclaim the $1 level and sustain buying pressure, a rally toward $2 may still be within reach.

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.

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