PI Token Under Pressure: Short-Term Bearish Trends Mask Long-Term Potential

Pi Network's native token Pi is experiencing significant volatility, with its price dropping 2.7% overnight to $0.4710 and 14.7% over the past week. This sell-off coincides with the recent unlocking of 270 million PI tokens, creating a supply shock in the market. Over 6 million PI tokens, worth approximately $2.8 million, flooded exchanges within 24 hours, intensifying downward pressure.

Technical indicators reflect bearish sentiment. The RSI at 34.94 indicates oversold conditions, while the MACD shows sustained downward momentum. Price action remains NEAR the lower Bollinger Band at $0.4708, with the 20-day SMA acting as resistance. Despite the downturn, the market capitalization holds at $3.59 billion, and trading volume increased by 2.87% to $82.73 million, signaling heightened activity during the correction.

Network fundamentals, however, show resilience. The Pi mining rate ROSE by 0.93% to 0.0030165 Pi per hour, suggesting continued user engagement. This growth in network participation could lay the groundwork for recovery, though achieving the $1 target by 2025 remains uncertain given current market conditions.