The cryptocurrency world has its share of volatile tokens, but Pi Network’s PI token is riding a particularly rough wave. After hitting an all-time high of $2.99 on February 26, PI has crashed over 73%, now hovering around $0.78 — dangerously close to its launch price of $0.70. The fall has far outpaced the broader altcoin market, which has only dipped 6.9% during the same period.
While some investors are eyeing technical patterns for signs of a possible recovery, others are increasingly concerned about deeper issues plaguing the project — from tokenomics to legal controversies.
Token Unlocks and Supply Pressure
One of the primary 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 hit the market in the next 30 days — more than 1% of the circulating supply. That’s roughly $82 million worth of sell-side pressure, or about $2.7 million daily, based on current prices.
Such sustained pressure is known to affect prices significantly, especially for tokens with limited exchange support and real-world use cases. A Keyrock report even suggests that 90% of token unlocks lead to downward price movements, usually within 30 days.
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Growing Pains and Controversy
Beyond the numbers, Pi Network has come under fire for its structure and transparency. Critics have compared the network to a multi-level marketing scheme, citing concerns about how tokens are distributed and promoted, particularly among vulnerable populations.
A report from Chinese law enforcement, recently spotlighted by Bybit’s CEO, described some aspects of Pi’s operations as potentially fraudulent — accusing unauthorized affiliates of targeting elderly users and harvesting personal data. Pi Network has denied all allegations, stating that the report referred to third parties falsely associating with the project, and no official inquiry has been directed at Pi itself.
Still, skepticism runs deep. Industry voices like Moonrock Capital’s CEO have questioned Pi’s $26 billion fully diluted valuation, suggesting it’s inflated by hype rather than substance.
Is a Rebound Possible?
Despite the storm, some technical analysts are spotting a descending wedge pattern — a classic signal of a potential breakout. Oversold indicators like the RSI (Relative Strength Index) suggest that PI may be due for a bounce, with optimistic projections pointing toward resistance levels at $1.40 and $1.75.
Yet, for a real turnaround, Pi Network may need more than chart patterns. A Binance listing, clearer token utility, or a strategic token burn could restore investor confidence. Until then, PI holders remain in a state of cautious anticipation, watching the charts — and the headlines — with equal interest.
