Pi Network Price Prediction Ahead of 231 Million Token Unlocks in April

Key Insights

• Pi Network price has slumped by over 45% from the highest point in March.
• The network will unlock over 231 million tokens in April.
• It has formed a head-and-shoulders pattern, pointing to more downside.

The momentum that the Pi Network price had in the first weeks of March has ended. Pi dropped to $0.1665 today, April 3, down 45% from its March high. This retreat may continue in the coming weeks as the token unlocks continue.

Pi Network Price at Risk Amid Token Unlocks

One reason why the Pi Network has struggled since its mainnet launch in February last year is that more tokens enter the market each day, a trend that will continue in the foreseeable future.

Data shows that over 231 million tokens will be unlocked this month. At the current price, these tokens are worth nearly $40 million, which is equivalent to about 2% of its market capitalization.

Additional data shows that over 1.57 billion tokens worth $269 million or 15% of its market capitalization, will be unlocked this year. These emissions make it one of the most inflationary tokens in the crypto market.

Token unlocks are usually highly bearish for a coin because they usually increase the number of tokens in circulation. In most cases, crypto projects offset this by introducing buybacks and burning.

A buyback occurs when a crypto project uses the fees it generates to repurchase its tokens. A burn, on the other hand, moves tokens to a dead wallet that cannot be accessed, thus reducing the number of tokens in circulation.

More Pi Network tokens will come online in the coming years as it has a supply cap of 100 billion tokens, while those in circulation today are worth less than 10 billion.

Additionally, the network is conducting its second migration, which enables pioneers to move their mined tokens online. Many of the pioneers are selling their tokens after the migration process.

Pi Coin Demand Has Waned

The ongoing Pi Network supply increase is happening at a time when demand for the coin and other cryptocurrencies is falling. CoinMarketCap data shows that the volume of all crypto tokens dropped by over 21% in the last 24 hours to $78 billion. The volume stood at over $200 billion late last year.

Pi Network’s volume has also slumped despite the recent Kraken listing that made it available to most American customers.

Data shows that the 24-hour volume dropped to just $13 million from last month’s high of over $90 million. Kraken’s volume was just $27k, much lower than OKX’s $2.8 million. As such, the weak Kraken volume will likely drive more exchanges to list it.

These challenges outweigh the bullish catalysts the team is implementing. For example, the team is working on a major upgrade that will introduce smart contracts to the platform.

Smart contracts are self-executing programs on a blockchain that eliminate the need for intermediaries. Just this week, the developers announced they had activated the RPC server, a move that will make it easier for developers to build decentralized applications (dApps) such as those in decentralized finance and real-world asset tokenization.

Pi Coin Price Prediction: Technical Analysis

The daily chart shows that the Pi Network Coin price has slumped in the past few weeks. It has slumped from a high of $0.30 in March to $0.1700, its lowest level since February 28.

The coin has formed a head-and-shoulders pattern, which typically signals a strong bearish breakdown. It has also fallen below all moving averages, while the Accumulation and Distribution indicator has continued to fall.

Therefore, the token will likely continue to fall in the near term, potentially to an all-time low of $0.1304, which is about 23% below the current level. A move below that price will point to more downside, potentially to the psychological level at $0.10.

On the other hand, a move above the 100-day Exponential Moving Averages at $0.20 will cancel the bearish outlook and lead to more gains.

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