PI Token, the native cryptocurrency of Pi Network, has faced a steep 17% decline in July 2025. This downturn comes amid a major supply unlock and weakening on-chain metrics, raising concerns among investors. Will the token recover, or is further downside ahead?
PI Token Faces Critical Support Test
The PI Token is struggling to hold above $0.4000, a crucial support level last tested on June 13. A breakdown below this level could push the token toward all-time lows. Key factors contributing to the bearish trend include:
- 160 million PI tokens set to unlock in August, increasing circulating supply by 2.1%
- Delayed integration with Onramp Money, a key fiat on-ramping service
- Technical indicators showing continued weakness across multiple timeframes
Supply Unlock Could Worsen PI Token’s Bearish Trend
The upcoming token unlock represents a significant event for PI Token holders. Historical data shows such events often lead to:
| Impact | Description |
|---|---|
| Selling Pressure | Early investors and miners may cash out |
| Liquidity Impact | Increased supply can dilute price |
| Market Sentiment | Negative perception of inflation risk |
Technical Analysis Reveals PI Token’s Weakness
The technical outlook for PI Token remains concerning:
- RSI trending toward oversold territory without reversal signs
- MACD approaching bearish crossover
- Consistent formation of lower highs and lower lows
Potential Scenarios for PI Token
Market analysts suggest two possible paths for PI Token:
- Bearish Case: Breakdown below $0.4000 could lead to $0.3837 (S1 pivot) and potentially $0.2585 (S2)
- Bullish Reversal: Recovery above $0.5000 would signal trend change
FAQs About PI Token’s Recent Performance
Q: Why is PI Token dropping?
A: The decline stems from supply unlock concerns, technical weakness, and delayed platform integrations.
Q: When is the PI Token supply unlock happening?
A: Approximately 160 million tokens will unlock in August 2025.
Q: What’s the key support level for PI Token?
A: $0.4000 is the critical level to watch; a break below could lead to further declines.
Q: Are there any positive signs for PI Token?
A: Some accumulation by unknown wallets suggests potential buying interest at lower levels.
