Pi Network Needs to Break Below $0.40 for a Sustainable Rally – Here’s the Market Reality

Pi Network's price momentum shows signs of weakening, with a potential drop below the critical $0.40 support level looming. Despite recent ecosystem developments—including app hosting and merchant integrations—market sentiment remains bearish as positive catalysts appear exhausted.

The Pi2Day hype, which briefly lifted prices on announcements of AI collaborations and new applications, has faded. Analysts note these moves were driven by speculative enthusiasm rather than sustained capital inflows. July’s impending token unlock of 276 million PI—3.7% of circulating supply—adds downward pressure, with no immediate catalysts to absorb the additional liquidity.

Historical patterns suggest Pi Network’s price rallies are short-lived. Events like the Mainnet launch and Pi2Day celebrations triggered transient spikes, typically reversing within days. Traders remain wary of establishing long positions amid this volatility.

Technical analysis identifies $0.40 as both a psychological and chart-based support level. A decisive break below could accelerate selling before any meaningful rebound materializes.