Pi Network (PI) Dips 3% Ahead of July 4 Token Unlock – Time to Buy the Fear?

Pi Network's native token stumbles as investors brace for impending supply shock.

With just two days until July 4's scheduled token unlock, PI prices slipped 3% as traders priced in the coming dilution. The mobile-mining project faces its first major liquidity test since crossing 35 million users.

Market jitters hit as unlock looms

PI's drop mirrors classic pre-unlock behavior seen across crypto—though at 3%, it's more whimper than crash. Either traders expect modest selling pressure, or they're betting Pi's grassroots community will HODL through the turbulence.

Finance veterans will recognize the pattern: another 'decentralized' project about to discover how decentralized its holders' conviction really is. The unlock could mint new paper millionaires—or reveal how many miners already dumped their PI via IOUs in China's gray markets.

Watch the order books come July 5. That's when we'll see if Pi Network's 'everyday crypto' promise holds up... or if it joins the graveyard of projects that couldn't survive their own liquidity.

TLDR

• Pi Coin (PI) dropped over 3% today, trading at $0.4908 and losing the $0.50 support level
• A major token unlock of 19.2 million PI tokens is scheduled for July 4, the largest unlock of the month
• Rising stablecoin popularity is creating competition challenges for Pi Network’s adoption goals
• Technical analysis shows Pi approaching oversold conditions with RSI at 36
• Pi Core Team holds 90% of total coins and may intervene to prevent price falling below $0.40

Pi Network price dropped more than 3% today, trading at $0.4908 and losing its brief support at the $0.50 level. The decline comes as the crypto faces multiple headwinds including an upcoming token unlock and growing competition from stablecoins.

Trading volume for Pi Coin fell more than 1% to $92.6 million during the session. The cryptocurrency has traded between $0.5142 and $0.4834 over the past 24 hours.

The price drop occurs within a broader crypto market selloff. The global crypto market cap declined around 0.6% to $3.29 trillion during the same period.

Bitcoin price lost approximately 0.3% while ethereum dropped around 0.5%. This broader weakness has contributed to reduced risk appetite among crypto investors.

Pi Network’s Future Open Interest continued to decline, indicating waning investor appetite for risk-based bets. The metric suggests traders are reducing their exposure to the asset.

Technical indicators show Pi Coin’s relative strength index (RSI) at 35, approaching oversold territory. This level typically indicates heightened selling pressure in the market.

The oversold condition could present an opportunity for investors to enter at lower prices. Such conditions often precede price recoveries as buyers step in.

July Token Unlock Creates Supply Pressure

PiScan data reveals that 19.2 million PI tokens are scheduled for unlock on July 4. This represents the largest single token unlock event for the month.

Token unlocks typically increase available supply in the market. The additional supply can create downward pressure on prices if demand remains constant.

July’s total token unlocks amount to 268.4 million PI tokens. This figure represents the highest monthly unlock scheduled until October 2027.

The successive unlock events create ongoing supply pressure. Market participants often anticipate these events and adjust their positions accordingly.

Pi Network released its AI-powered Pi App Studio on Pi2Day, Saturday. The no-code platform aims to boost the network’s ecosystem development.

Happy Pi2Day 2025! Today, Pi has introduced two exciting features to the ecosystem and provided various tech and product updates. First, Pi App Studio is an AI-powered platform that enables anyone to create Pi apps without coding—created to solve problems the world faces as AI… pic.twitter.com/6ZiVefdYsZ

— Pi Network (@PiCoreTeam) June 28, 2025

The network also introduced Ecosystem Directory Staking. This feature allows users to stake Pi tokens to increase an app’s ranking on the mainnet.

Stablecoin Competition Challenges Growth

Market analyst Kim H Wong identified stablecoin popularity as a threat to Pi Network’s adoption goals. Stablecoins offer price stability and regulatory compliance that Pi currently lacks.

The recent passage of the US stablecoin legislation, the GENIUS Act, through the Senate has boosted market confidence in stablecoins. This development strengthens stablecoins’ competitive position.

Pi Coin’s volatility and limited liquidity create disadvantages compared to stablecoins. These factors hinder the network’s ability to compete for mainstream adoption.

However, Pi Network maintains unique strengths including its mobile-first mining model. Users need only tap the app daily to participate in mining, lowering entry barriers.

The network’s 65 million user base provides a foundation for growth. The referral-based model has created a loyal user community.

Pi’s focus on decentralized applications and developer platforms could foster innovation. The ecosystem approach may differentiate it from simple payment-focused stablecoins.

Market experts suggest the Pi Core Team, which holds 90% of total Pi Network coins, may intervene to prevent further price declines. One analyst noted the team is “smart enough to avoid letting the price fall below $0.4.”

A drop below $0.40 could push Pi’s market cap ranking out of the top 30 cryptocurrencies. Such a decline might reduce the asset’s appeal among investors.

The MACD indicator shows the MACD line crossing below its signal line, triggering a sell signal for technical traders.