Pi Coin Drops 11% Amid Rally — 5 Key Signs a Surge Is Coming Soon
Pi Coin has fallen 11% from the month’s high, diverging from Bitcoin and many other altcoins that have risen 10%+. The broader crypto...
Quick overview
- Pi Coin has dropped 11% from its monthly high, contrasting with the upward trend of Bitcoin and other altcoins.
- The decline is primarily due to the upcoming release of new tokens, with 145 million tokens unlocking in July alone.
- Centralization concerns are hindering exchange listings, as major platforms like Binance and Upbit remain cautious due to transparency issues.
- Despite the recent downturn, technical indicators suggest a potential bullish reversal if Pi Coin can maintain support above $0.4056.
Pi Coin has fallen 11% from the month’s high, diverging from Bitcoin and many other altcoins that have risen 10%+. The broader crypto market is over $3.68 trillion, but Pi is under pressure.
The main reason for this drop is the release of new tokens. According to PiScan, the network will unlock 145 million tokens worth $67 million in the remaining days of July. Then 138.5 million in August, 117 million in September and 93 million in October — all increasing supply.
Adding to the selling pressure, investors have withdrawn 1.4 million Pi tokens from exchanges in the last 24 hours.
Key points on supply pressure:
- 145 million tokens unlocking in July, worth $67 million
- 138.5 million tokens unlocking in August
- Investors withdrawing 1.4 million tokens from exchanges recently
- Increased supply means downward pressure
Centralization Concerns Halt Exchange Listings
A major problem for Pi Network is centralization. The Pi Foundation has wallets with over $33 billion worth of tokens but these are unaudited, so transparency is an issue. This level of control is rare in decentralized crypto projects and has exchanges hesitant.
Mainstream exchanges like Binance and Upbit have not listed Pi Coin, citing these centralization risks. Low trading volume during a market wide bull run further shows investor caution. Pi’s 24 hour volume is around $80 million, much lower than other meme coins like Pepe, Shiba Inu and Bonk.
Pi Coin Technicals Suggest Bullish Reversal
Despite the recent drop, technicals point to a reversal for Pi Coin. The price has formed a double bottom support at $0.4056 and a key resistance at $1.6664 last seen in May. Pi’s chart also shows a falling wedge, which is a bullish reversal pattern as the converging trend lines suggest a breakout is near.
The MACD indicator is bullish and if Pi breaks above $1, it could go to $1.666. But if it drops below $0.4056, this bullish scenario is invalid.This is a token unlock and centralization driven drop but technicals suggest it’s a build up phase before a big move. Watch support and resistance.
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