Pi Network Needs a Dip Below $0.40 to Fuel Its Next Big Rally – Here’s the Market Logic

Markets love a good paradox—sometimes you’ve got to fall before you fly. Pi Network’s price action is serving up that exact script.

Why $0.40 matters more than moonboys want to admit

The magic number isn’t arbitrary. History shows altcoins often need a flush of weak hands before institutions even glance at the chart. For Pi, that reset level sits at $0.40—where leveraged longs would get liquidated and open the runway for fresh capital.

Retail’s pain = Smart money’s gain

Watch the order books. If bids stack up below that threshold, it’s not a breakdown—it’s a trapdoor for the next leg up. (Cue the ‘buy when there’s blood’ tweets from crypto influencers who absolutely didn’t just sell their bags.)

The cynical take? This is crypto’s version of ‘strategic retreat’—a fancy way to say ‘we need greater fools at lower prices.’ But hey, it works until it doesn’t.

Pi Network’s price momentum appears to be weakening, and it may soon fall below $0.40. Despite recent announcements about ecosystem growth and app hosting, experts hint that most of the positive developments have already been factored into the price, leaving little support for current levels.

Factors Behind the Bearish Outlook

1. Pi2Day HYPE Fully Priced In: The excitement around June’s Pi2Day event, AI collaborations, new merchant listings, and ecosystem applications briefly boosted market sentiment. However, these announcements were driven by emotion rather than real capital inflows, and the price impact has already faded.

2. Large Token Unlock Expected in July: In July, more than 276 million Pi tokens, accounting for 3.7% of the circulating supply, will be unlocked. With no new developments expected in the immediate term, this increase in available tokens is likely to add selling pressure, prompting cautious or bearish market behavior.

3. Short-Lived Price Rallies: Historically, PI Network’s price surges have been brief. Events like the Mainnet launch and Pi2Day celebrations have triggered short-term spikes, typically lasting less than a week, before prices returned to previous levels. As a result, professional traders remain hesitant to hold long positions.

4. $0.40 as a Key Support Level: Technicals point $0.40 both a critical chart support and a psychological threshold. A drop below this level could trigger buying interest, creating a triple-bottom pattern that might support a future recovery.

New Developer Hosting May Support Long-Term Growth

While short-term price forecasts remain bearish, Pi Network recently introduced an update to its platform that could strengthen its ecosystem. The core team announced it WOULD begin directly hosting developer applications, removing the need for external infrastructure like servers and security systems.

This change is expected to lower the barrier for developers, enabling faster, easier creation of applications that use Pi for payments and transactions. It could help attract more developers to the platform and gradually increase the utility and use cases for the Pi token.