The Pi Network (PI) has faced a sharp 12% decline over the past 24 hours, aligning with broader cryptocurrency market trends. The digital asset fluctuated between $1.25 and $1.59 before stabilizing around $1.39. Investors remain cautious ahead of key U.S. inflation data, which could influence risk sentiment across financial markets. Meanwhile, the Pi Core Team’s recent token movements have added to selling pressure, with an anticipated release of 282 million tokens next month further amplifying supply concerns.
Market Trends and Key Influences
The broader cryptocurrency market has been experiencing a downturn, with investors shying away from riskier assets amid macroeconomic uncertainty. Despite an uptick in trading volume for PI, the price drop suggests that selling pressure continues to dominate. Market participants are closely monitoring the impact of upcoming inflation data, as higher-than-expected figures could further dampen sentiment.
Additionally, on March 7-8, the Pi Core Team moved 126 million tokens, raising concerns among traders. However, PiScan, a blockchain monitoring service, clarified that these were routine transactions. Nevertheless, with 23 million tokens expected to be released daily over the next month, the risk of oversupply looms large, potentially further pressuring PI’s price.
Key Support and Resistance Levels
Technical analysis indicates that PI is currently testing critical support at $1.05. If this level is breached, a further decline toward the $0.85 region could be possible. On the upside, resistance is projected between $2.40 and $2.60, a zone that would require strong buying momentum to break through.
Long-Term Potential and Market Outlook
Despite short-term challenges, PI’s long-term prospects remain promising. The cryptocurrency is gaining traction as a payment method, particularly in real estate transactions. Additionally, the upcoming “Pi Day” in March could provide a psychological boost to investor sentiment. However, unless the market absorbs the incoming token supply efficiently, price volatility may persist in the coming weeks.
Also Read: Pi Network Sets Final Mainnet Migration Deadline for March 14, 2025—Last Chance for Pioneers!
For now, traders are advised to tread cautiously, keeping an eye on macroeconomic developments and Pi Network’s evolving supply dynamics.
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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