Crypto: Pi Network Experiences Strain Before Its Biggest Token Unlock

The Pi Network is stepping into an unstable phase. On July 4th, a large number of tokens will enter the market, increasing the available supply in a market that is already under pressure. The PI crypto has fallen for six straight days and is struggling to gain confidence, particularly after the Pi2Day announcements failed to meet investors’ expectations. With community disappointment and upcoming tensions, the project faces significant stakes in the coming days.

An Unlocking of Historic Proportions That Burdens the Price

The two new features announced during Pi2Day on June 28 raised great hopes, but on July 4, the Pi Network will experience one of the most sensitive events in its economic calendar: the unlocking of 19.2 million Pi tokens, according to PiScan data.

The occurrence signifies the commencement of a month that will be particularly busy for the project, as 268.4 million tokens are to be released incrementally over July. It will represent the “largest monthly unlocking until October 2027”. In a market that is already under pressure, this type of abrupt escalation in supply prompts concerns about a substantial influx of tokens onto crypto trading platforms, and a bearish effect is anticipated.

At this point, the crypto market’s response indicates that nervousness is clearly dominant. This Tuesday, the PI price fell 3%, marking its sixth consecutive session in decline and dropping below the $0.50 threshold for the first time. Technical analysts can clearly see that the momentum continues to be strongly bearish, with several critical levels:

The occurrence signifies the commencement of a month that will be particularly busy for the project, as 268.4 million tokens are to be released incrementally over July. It will represent the “largest monthly unlocking until October 2027.” In a market that is already under pressure, this type of abrupt escalation in supply prompts concerns about a substantial influx of tokens onto crypto trading platforms, and a bearish effect is anticipated.

At this point, the crypto market’s response indicates that nervousness is clearly dominant. This Tuesday, the PI price fell 3%, marking its sixth consecutive session in decline and dropping below the $0.50 threshold for the first time. Technical analysts can clearly see that the momentum continues to be strongly bearish, with several critical levels:

Pi2Day and Technical Announcements Tested by the Market

The Pi Network team introduced a number of innovations designed to bolster the ecosystem, including the launch of Pi App Studio, an AI-driven no-code platform, on the occasion of the eagerly awaited Pi2Day last Saturday.

The goal of this interface is to enable developers, including those without a technical background, to easily build decentralized applications in the Pi universe. In the Ecosystem Directory, the network has introduced a staking feature that enables users to stake their tokens in order to enhance the ranking of applications on the mainnet.

Even with these endeavors, the announcements failed to yield the anticipated impact on the market. The introduction of Pi App Studio on Pi2Day did not succeed in rekindling bullish sentiment.

Technically speaking, the indicators do not inspire much optimism. The MACD is nearing a forthcoming bearish crossover, and the RSI, currently at 36, is perilously moving toward the oversold zone, indicating excessive selling pressure. It appears that the market is overlooking fundamental factors, instead concentrating on technical signals and risks associated with unlocks.

Shortly, a market sentiment that has weakened in conjunction with a heavy unlocking schedule could exacerbate the downward spiral. To prevent a more severe collapse, the Pi Network will require clear backing from its community and/or fundamentally positive news. Without it, July may turn out to be a painful turning point for a project that continues to have difficulty gaining traction beyond its enormous distribution model.

 

 

 

 

 

 

Disclaimer and Risk Warning
coinweck does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. The image used in this article is for informational purposes only and is provided to us by a third party.  coinweck should not be held responsible for image copyright issues. Contact us if you have any issues or concerns. Readers should do their research before taking any actions related to the company.