As the Pi Network remains stagnant within a narrow trading range, investors brace for the month's biggest token release. What challenges and opportunities lie ahead in the world of crypto?
The world of cryptocurrencies is constantly evolving, and Pi Network is no exception to this dynamic. Although the token has shown mixed performance recently, with the price stuck in a narrow range, investors are keeping a close watch on upcoming events.
Currently, PI is trading at $0.7504, up only 0.2% for the day. Over the past seven days, the token has fluctuated between $0.7406 and $0.8586. It is still 74% below its all-time high of $2.99 recorded in February.
Despite this price stagnation, trading volume has seen a significant increase. Over $145 million has been traded in the last 24 hours. This is a 16.2% increase from the previous day. This increased activity reflects a renewed, albeit cautious, interest from market participants.
However, the focus is primarily on the upcoming wave of PI token unlocks. On May 26, 10 million PI were released, followed by 12 million on May 27. But the largest release is scheduled for May 28. 15 million tokens will enter circulation in a single day.
In the months ahead, this trend does not seem to be weakening. According to on-chain data, 263 million tokens will be unlocked in June, 233 million in July, and 132 million in August. This abundance of new supply could exert additional pressure on prices. Especially as data indicates that more and more holders are transferring their tokens to centralized exchanges.
From a technical perspective, PI is trading in a narrow Bollinger band range, with support at $0.53 and resistance at $1.15. Although the direction is still uncertain, the price’s middle position suggests low volatility and a coiling pattern, which often precedes a breakthrough.
Momentum indicators are largely neutral. The relative strength index, at 48.36, indicates a lack of clear direction, while the stochastic RSI, at 18.16, suggests short-term overbought conditions. The MACD has displayed a bearish momentum by crossing below its signal line at 0.0047.
Most short and medium-term moving averages are above the current price and continue to act as resistance. A significant volume and breakout above $0.85 could pave the way for a move towards $1.00 and eventually $1.15.
Conversely, if the support at $0.74-$0.75 is not held, PI could retrace to the psychological level of $0.70, with further downside risk to $0.65 or even the lower Bollinger band at $0.53. Sustained selling pressure could be exacerbated by the significant excess supply from the upcoming unlocks.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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