Pi Network price has fallen by over 38% as investors sold the Kraken listing news.

Pi Network (PI) price has dropped over 10% over the past 24 hours and 38% from its highest point on Friday, March 13. 

It remains at risk of more downside as technical indicators present a bearish outlook for the coming sessions.

On the 24-hour/USDT price chart, the PI price has confirmed a MACD crossover, which happens when the MACD line crosses below the signal line. When such a bearish crossover forms, an asset has historically signaled a period of consolidation or further price declines as momentum shifts in favour of the sellers.

Additionally, the Pi Network price is closing in on the 50-day SMA, which had been serving as key support for the token during its recent recovery phase. A drop below the $0.176 level could trigger a sharp sell-off, potentially leading to a significant price decline toward the next psychological floor. 

At the same time, the Money Flow Index is closing in on neutral territory, a sign that the intense buying and selling pressure in the market is starting to balance out after the recent volatility. 

Based on the confluence of bearish technicals, the Pi Network risks a drop to its Feb. 23 low of $0.1560 with no immediate support to cushion the fall if current levels fail to hold. 

Why is Pi Network price crashing?

Pi Network’s recent downtrend began after its listing on crypto exchange Kraken on March 13. Investors likely sold the news as they booked profits after the token surged nearly 30% after the listing. 

A more recent bearish development that has turned investors cautious is the token unlock event scheduled for later today. Notably, about 17 million PI tokens will be entering circulation following the event, which adds to the existing supply overhead. 

Investors are likely reducing exposure to the token as they expect that the market will not be immediately able to absorb the newly released tokens, which tends to reduce scarcity and put downward pressure on the price.