TL;DR
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PI remains in decline, with growing concerns that the price drop could deepen as exchange balances swell by millions of coins.
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Massive token unlocks are adding to the pressure, with 18.2 million PI scheduled for release today.
Another Crash Incoming?
The cryptocurrency market experienced a solid resurgence over the last seven days, with some leading digital assets charting double-digit gains. However, this wasn’t the case for Pi Network (PI), whose price continued its negative trend.
As of this writing, it trades at roughly $0.48, representing a 13% decline on a weekly scale and a 26% plunge over the past month.
And while the PI holders and proponents expect to see the end of the downturn, some important indicators suggest that the crash might intensify even further in the near future.
For instance, the number of tokens stored on centralized exchanges has surged by over six million in the last 24 hours. Currently, more than 366 million PI are held on such platforms, a value with an approximate USD equivalent of $177 million.
The increased supply on exchanges doesn’t guarantee that investors are preparing for a massive sell-off. Nonetheless, the development can be viewed as bearish since it increases the immediate selling pressure.
Not the Only Factor to Watch
The upcoming token unlocks also spell bad news for the bulls. The record 18.2 million PI are scheduled for release today, which will give people the opportunity to offload their long-awaited coins. The unlocks will remain high until mid-July, following which the temp is expected to cool off.
It is worth noting that the release of PI tokens accelerated last month, triggering renewed selling pressure. The price of the asset nosedived to just under $0.40 on June 13. The collapse coincided with the geopolitical tension caused by the military conflict between Iran and Israel, which had a significant impact on the entire cryptocurrency market. One X user who often gives his two cents on PI said at the time:
