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

Pi Network's price momentum is showing signs of fatigue, with a potential drop below the critical $0.40 level. Despite recent ecosystem developments like app hosting expansions, analysts believe these factors are already reflected in the current valuation, offering limited support.

The temporary boost from Pi2Day celebrations—featuring AI partnerships and merchant integrations—has dissipated. These gains were primarily sentiment-driven rather than backed by substantial capital inflows, leading to a market correction.

A major test arrives in July: 276 million Pi tokens (3.7% of circulating supply) will unlock. With no near-term catalysts, this supply influx could intensify selling pressure.

Historical data shows PI Network's rallies are typically short-lived. Events like Mainnet launches and Pi2Day often trigger week-long spikes before prices retreat. Traders remain skeptical about sustained upward movement.

The $0.40 mark is now a key psychological level. A breakdown could flush out weak holders and potentially create conditions for a healthier rebound, though current fundamentals suggest a cautious approach.