Can Pi Network Hold Its Ground as Millions of Tokens Flood the Market?
On February 20, 2025, Pi Network launched its Open Network, transitioning from an enclosed mainnet to an open one. This pivotal move enabled external Wallet A device or application that securely holds a user's public and private keys while allowing interaction with a blockchain network.
In April, Pi Network integrated with Chainlink, a leading decentralized oracle network. This integration allows Pis real-time price data to be utilized across various blockchain platforms, enhancing its utility in smart contracts, decentralized finance (DeFi) applications, and Web3 services.
Additionally, Pi Network completed its advertising network pilot phase, opening opportunities for developers to monetize applications within the ecosystem.
Token Unlock Schedule
On April 16, 2025, Pi Network released 7.1 million PI tokens into circulation, valued at approximately $4.34 million. This event contributed to a price decline, with PI trading around $0.61, marking an 80% drop from its all-time high of $3.00. The sudden increase in supply, without a corresponding rise in demand, has raised concerns about potential further price erosion.
Pi Network plans to unlock approximately 1.6 billion tokens over the next 12 months, averaging about 134 million tokens per month. In the near term, over 203 million tokens are set to be released in the next 30 days, equating to an average of 6.78 million tokens daily. This steady influx could exert additional downward pressure on PIs price if demand doesnt keep pace.
Investor sentiment appears cautious amid the increasing supply. While some community members remain optimistic, the broader market shows signs of reduced buying pressure. Technical indicators, such as the on-balance volume (OBV), have been declining, suggesting waning investor interest.
However, there are efforts within the Pi community to bolster confidence. The core team has called for coordinated buying to support the tokens price, aiming to counteract the effects of the unlocks.
Technical Analysis
As of April 17, 2025, PI is trading around $0.61, experiencing a 17% decline amid bearish market sentiment . Technical indicators suggest a challenging outlook:
Resistance Levels: PI faces significant resistance at $0.71.
Support Levels: Key support is identified at $0.595 and $0.55.
Market Indicators: The Money Flow Index (MFI) stands at 23, nearing oversold territory, while the Accumulation/Distribution (A/D) indicator reflects consistent selling pressure.
Despite these challenges, some analysts point to a potential double-bottom pattern forming at $0.7663, which could indicate a bullish reversal if confirmed.
Conclusion
Pi Networks transition to an open mainnet and integration with Chainlink mark significant milestones in its development. However, concerns regarding its tokenomics and recent price volatility underscore the challenges ahead. Investors should monitor these developments closely and consider both the potential and risks associated with PI.
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