Pi Network (PI) price drops to a low of $0.7012, its lowest level since Feb. 25

Pi Network price continued its strong downward trend as buyers remained on the sidelines and concerns about the upcoming token unlock grew.

Pi Network price continued its strong downward trend as buyers remained on the sidelines and concerns about the upcoming token unlock grew.

Pi Network (PI) dropped to a low of $0.7012, its lowest level since Feb. 25, and is now down 76% from its all-time high. This decline has led to a $14 billion wipeout, with its market cap crashing from nearly $20 billion to $4.76 billion.

The Pi coin sell-off continued as traders focused on the upcoming token unlock, which is expected to lead to further dilution. According to PiScan, over 124 million Pi coins will be unlocked this month.

These unlocks will increase over the next three months, reaching a peak of 233 million in July. Overall, the network anticipates unlocking more than 1.53 billion tokens over the next 12 months, bringing the total circulating supply to 8.2 billion.

Pi Network has become one of the most inflationary cryptocurrencies, a trend that is likely to persist. This is due to the maximum supply being capped at 100 billion Pi coins, while the current circulation stands at 6.7 billion.

Token unlocks contribute to inflation by boosting the number of tokens in circulation. Some cryptocurrencies mitigate these unlocks through a burning mechanism, where tokens are sent to a dead address to decrease the supply.

It remains uncertain whether Pi has plans to introduce such a burning mechanism. One possibility could involve incinerating all tokens that are not moved to the mainnet by the June deadline. Another option might be to burn ecosystem fees.

Perhaps Nicolas Kokkalis, Pi’s co-founder, will address these concerns during the project’s first X Space. He is expected to share the roadmap and highlight upcoming features.

Pi Network price has also faced difficulties due to a lack of exchange listings. No major tier-1 exchange has listed the token since its mainnet launch in February.

Pi Network price technical analysis

The four-hour chart shows that Pi coin has been in a persistent downtrend over the past few months and is slowly approaching its all-time low. It remains below the 50-period moving average, indicating that bears are still in control.

On a positive note, Pi Network has formed a falling wedge pattern, a popular bullish reversal signal. As the two trend lines are nearing convergence, it could rebound in April and potentially retest the psychological level at $1. All Pi needs is a single catalyst, such as a major exchange listing.