Pi Network (PI) token price plunges 17% as broader cryptocurrency market faces instability

The Pi Network (PI) token has experienced a significant price drop in recent days, falling to $0.608, marking a 17% decrease.

Pi Network (PI) token has experienced a significant price drop in recent days, falling to $0.611, marking a 17% decrease. This decline comes as the broader cryptocurrency market faces instability following the Mantra (OM) token crash, which saw OM lose nearly 90% of its value before recovering slightly with a 30% bounce.

PI is currently trading at its lowest point in the past week, although it remains higher than levels seen a few weeks ago. Despite a brief recovery attempt that reached $0.7822, the price has failed to maintain momentum and has been rejected at key resistance levels.

The downward trend has been ongoing for several weeks, with the token forming a pattern of lower highs and lower lows on the daily chart. This pattern indicates a bearish market structure that has yet to show signs of reversing.

Technical Indicators Point to Continued Weakness

Looking at the 4-hour chart, PI recently experienced a bearish market structure break when the price dropped below the $0.71 support level. This breakdown suggests that bears currently control the market direction.

The Money Flow Index (MFI) on the 4-hour timeframe sits at 23, just above the oversold region, indicating strong selling pressure. Similarly, the Accumulation/Distribution (A/D) indicator has been stepping downward over the past two days, confirming weak buying volume.

A key support zone has formed between $0.595 and $0.605, which has undergone multiple tests without yielding a definitive break. If this zone fails to hold, the next support levels to watch are $0.55 and potentially $0.52, where a market structure break might occur.

The Relative Strength Index (RSI) has twice dipped into oversold territory, suggesting potential short-term bottoms. These oversold conditions have aligned with MACD golden cross signals, hinting at brief bullish momentum within the broader downtrend.

However, these recoveries have been short-lived, as the price continues to face resistance from the downward-sloping trendline. The current RSI reading of around 53 implies slightly bullish short-term momentum, but no clear breakout is evident yet.

Supply Concerns Weighing on Price

One of the main factors putting pressure on Pi Network’s price is the tokenomics structure. According to reports, over 1.5 billion PI tokens are scheduled to be unlocked this year, significantly increasing the circulating supply.

This supply inflation comes at a time when Pi Network has yet to secure listings on major exchanges like Binance or Coinbase, limiting potential demand growth. The imbalance between increasing supply and stagnant demand creates ideal conditions for continued price declines.

The lack of transparency around token economics has also contributed to market uncertainty. Community members have expressed doubts about both the project’s future viability and its current market value, with calls for clearer, more consistent updates from the Pi Core Team.

What’s Next for Pi Network?

While the overall outlook appears bearish, some potential catalysts could help stabilize Pi Network’s price. Implementing a token burning mechanism that reduces circulating supply could help address inflation concerns and potentially drive up demand.

Securing listings on major exchanges would significantly boost liquidity and accessibility for potential investors. This would help bridge the gap between increasing supply and limited demand.

For traders following PI, key levels to watch include resistance at $0.63 and $0.66, with a breakout above $0.71 potentially signaling a shift in market structure. On the downside, a break below $0.595 could accelerate selling pressure, with some analysts predicting a drop as severe as 55%, potentially testing the $0.3945 level.

Trading volume patterns will be critical to observe, as high-volume breakouts above resistance or breakdowns below support would provide stronger confirmation of the next price direction.

tldr; Pi Network (PI) token price has fallen to its lowest level in recent days, hitting $0.611 following a 17% decline from highs of $0.7822. The token is now trading at its weakest point in the past week, although it remains elevated compared to troughs seen a few weeks ago.

This decline comes amid broader cryptocurrency market instability following the Mantra (OM) token crash, which saw OM lose nearly 90% of its value before recovering slightly with a 30% bounce.

The technical outlook on PI remains bearish, with the token forming a pattern of lower highs and lower lows on the daily chart, indicating a downtrending market structure that has yet to show signs of reversing.

The MFI on the 4-hour chart is sitting at 23, just above the oversold region, which could suggest strong selling pressure. The Accumulation/Distribution indicator has also been stepping down over the past two days, confirming weak buying volume.

Key support is seen at $0.595 to $0.605