title: Pi Network (PI) Token Crashes Over 73% From ATH, 102M Tokens to Unlock

The cryptocurrency world has its share of volatile tokens, but Pi Network's PI token is riding a particularly rough wave.

In the dynamic realm of cryptocurrency, tokens are known for their volatility, but Pi Network’s PI token has been charting a particularly turbulent course. After reaching an all-time high of $2.99 on February 26, PI has crashed by over 73%, now hovering around $0.78 — perilously close to its launch price of $0.70. This fall has far outpaced the broader altcoin market, which has only seen a 6.9% dip during the same period.

While some investors are keenly examining technical patterns for signs of a possible recovery, others are becoming increasingly concerned about deeper issues that could be afflicting the project — from tokenomics to legal controversies.

Token Unlocks and an Influx in Supply

One of the prime forces dragging down PI’s price is its token issuance model. According to blockchain data platform PiScan, over 102 million PI tokens are expected to enter circulation in the next 30 days — an addition of over 1% to the circulating supply. That translates to roughly $82 million in sell-side pressure, or about $2.7 million daily, based on current prices.

Sustained pressure of this magnitude is known to have a significant impact on prices, especially for tokens with limited exchange support and apparent real-world use cases. A Keyrock report suggests that 90% of token unlocks result in downward price movements, usually within a 30-day period.

Growing Pains and Specter of Controversy

Beyond the figures, Pi Network has faced criticism for its structure and transparency. Some have likened the network to a multi-level marketing scheme, raising concerns about how tokens are distributed and promoted, particularly within vulnerable communities.

A report by Chinese law enforcement, recently highlighted by Bybit CEO Ben Zhou, focused on a group that was not authorized by Pi Network and engaged in unauthorized financial and trade activities. The report, part of the nation’s crackdown on blockchain and crypto scams, described how this group targeted elderly users, making false claims about Pi Network to deceive them and harvest their personal data.

In response to the report, Pi Network stated that no official inquiry has been made with Pi Network itself. The project also distanced itself from the third parties mentioned in the report, adding that they have no affiliation with Pi Network and are attempting to deceive users for their own gains.

However, skepticism toward Pi Network persists. Prominent industry figures like Moonrock Capital CEO Ivan Monzon have raised concerns about Pi Network’s fully diluted valuation of $26 billion, suggesting it’s driven more by hype than fundamentals.

A Glimpse of Hope for a Rebound

Despite the technical difficulties and broader criticisms, some technical analysts are highlighting a descending wedge pattern in the charts, which could be a classic signal of a potential breakout. Oversold indicators like the RSI (Relative Strength Index) suggest that PI may be poised for a rebound, with optimistic projections pointing toward resistance levels at $1.40 and $1.75.

But for a complete turnaround, Pi Network may need more than just chart patterns. A Binance listing, clearer definition of token utility, or a strategic token burn could be crucial in restoring investor confidence, which has been battered by the recent events.

As the dust settles on PI’s volatile journey, its fate will depend on how the project navigates these challenges and adjusts its strategy to meet the evolving needs and concerns of the cryptocurrency community.