Why Unlocking Pi Network's 275 Million Token Could Cause a Drop to an All-Time-Low

PI is preparing to unlock over 250 million tokens in June, a move that could increase selling pressure on this altcoin.

With technical indicators showing declining investor interest, PI could slide to its All-Time-Low of $0.40 or even go beyond that threshold.

Pi Network Prepares for Unlock in June

According to data from PiScan, Pi Network is expected to unlock 276 million PI tokens in June. At the current market price, these tokens are worth approximately $176 million.

With investors being cautious due to weak prices and low trading volume, this unlock period could be particularly disruptive. Typically, a large number of tokens entering the market will lead to increased selling pressure, especially when investor sentiment is negative and there is insufficient demand to absorb the new supply.

This is the case with PI, as daily chart indicators show signs of continuous capital outflow. For example, the token's Relative Strength Index (RSI) is trending downward and below the neutral 50 level at 40.49.

The RSI measures overbought and oversold conditions of an asset. It oscillates from 0 to 100. Values above 70 indicate an asset is overbought and may decline, while values below 30 indicate the asset is oversold and may recover.

PI's RSI indicates market investors' preference for distribution over accumulation. If this trend continues, its price may continue to decline.

Moreover, the token's Aroon Down line is at 86%, confirming the strength of the decline. The Aroon indicator is used to determine trend direction and strength. When the Aroon Down line is near 100%, it suggests recent price action consistently reached new lows, indicating strong downward momentum.

At 86%, Pi's Aroon Down level shows the asset has consistently reached lows at a high frequency, with very little or no recent correction.

Pi Price Slides to $0.40 — Imminent Decline or Recovery?

At the time of writing, PI is trading at $0.63. With increasing selling pressure, PI sellers could push its price to the All-Time-Low of $0.40.

If this support level does not hold, the altcoin could fall to new lows.

However, if there is a new increase in demand for the token, this would invalidate the price decline prospects. In that case, PI could recover and rise to $0.86.