Pi Network is facing increased stress from major token unlock events. In anticipation of token releases, traders expect heavy selling as hundreds of millions are made available in the next few months.

Sideways trading is occurring on Pi Coin at a rate of $0.7504. The market is tracking closely to see the impacts these unlocks have on stability and how people trade.

Key-Takeaways:

• Supply in the Pi Network will continue to increase as hundreds of millions of tokens are due to be released. Amid uncertainty, traders expect others will sell which might drive down prices.
• Pi Coin is currently at $0.7504 and both short-term and long-term signals point to low momentum. Limited market movement and raised precaution among traders are holding the market in a tight band.

Setting Release Dates Ahead Brings Pressure on Supply

Pi Network announced major token unlock that’s on May 26, they unleashed 10 million Pi tokens and then released another 12 million on May 27, according to Pi Scan. Just over 15 million tokens became available on May 28, representing the biggest single-day major token unlock so far in the current 30-day period. 

Future major token unlock of newly minted tokens are causing greater challenges with supply for Pi Network. June is set to release 263 million tokens, July will see 233 million and August will see 132 million.

Such constant releases might lead to another price decline. Because of today’s market instability, these challenges keep pushing token values down.

Data on the blockchain shows more token holders are sending their coins to centralized exchanges which may indicate they are getting ready to sell once the major token unlock take place. Normally, rising supply when prices are already high weakens the ability for prices to rise.

Consolidation Patterns

The significant major token unlock is contributing to Pi Network’s current technical situation, as tokens are being traded within a small range of $0.53 and $1.15. With mid-range prices, this stage often brings slow growth until a major event causes a major break, as the exact outcome is unclear because of the large token unlock. 

Momentum shows that the market remains cautious about important unlocks of major tokens. Based on the RSI, the conditions aren’t strong and short-term stochastic suggests the asset is oversold. MACD going below the signal line at 0.0047 hints at negative sentiment partly caused by large token unlock events.

Currently, moving averages continue to function as support levels that prevent rates from climbing. A rally above $0.85 on increased volume could help the coin reach and possibly test the levels seen at $1.00 and $1.15. Even still, reaching a major token unlock can cause the price to slow down because it adds to the supply.

When major token unlocks happen, market emotions vary; there was a 16.2% rise in trading volume to over $145 million, yet it still indicates that traders are being cautious. It means traders are making bets in preparation for possible fluctuations when large token releases happen, even as they keep their defense strong. 

The team behind Pi Network tries to make the token useful for the long term, making up for immediate pressures from major unlocks. By supporting AI, gaming, fintech and e-commerce startups, the new $100 million fund could give Pi Network’s tokens more uses and a higher demand which could ease the major selling pressure resulting from unlocked tokens. 

When these applications are launched successfully and their use grows, it could eventually encourage people to buy crypto again, but any major token unlock should be handled with care. Those working in the market have to weigh up anticipated upgrades with the release of large amounts of tokens into supply.

The Impact When Unlocked Is Shown in the Price

The occurrence of major token unlock events provides the Pi Network market with various prices. If market demand can support the unlocked supply, bullish scenarios mean prices reaching $1.00 and $1.15 after major volume and price surges above resistance.

The chances of bearish outcomes rise when significant token unlock selling outweighs what the market can purchase. If Gold fails to hold $0.74-$0.75, it may slide down to the $0.70 support level and, during heavier selling, could fall even lower to $0.65 or the lower Bollinger Band at $0.53. 

Conclusion

Most of Pi Network’s current and ongoing price changes depend on major token unlock events, so supply-demand analysis is very important as a large number of tokens are made available over the coming months.