Cryptocurrency Pi plunges to its record low of $0.35 prior to the scheduled Token Unlock event
The upcoming large-scale unlock of Pi Network tokens, particularly the 156-160 million tokens scheduled for August 2025, is expected to significantly increase the market supply, potentially causing downward pressure on PI token prices near historic lows around $0.30–$0.40.
This surge in circulating tokens could outpace existing demand given the limited utility and liquidity, amplifying price volatility and the risk of price drops due to selling pressure.
In response, some whales and community participants have started locking significant amounts of PI, with over 3.3 million tokens locked recently, indicating that some holders are trying to reduce immediate selling and show long-term faith in the project despite the price weakness. The mining rate cut by 8% aims to slow new token supply growth and support stabilization efforts.
However, on-chain data shows increasing sell-side interest and growing short positions on PI derivatives, with trading open interest reaching around $30 million, signaling anticipation of price declines amid the token unlock wave. The combination of major token unlocks from August through year-end—totaling hundreds of millions of PI tokens—raises the possibility of extended price pressure unless demand expands materially or utility improves.
The MACD line has moved below the signal line, indicating a bearish crossover and showing that momentum lies with sellers. The concentration of holdings increases the risk of sudden price movements due to whale activity. The silence of the founders, combined with increasing uncertainty, is making investors nervous.
The top 100 wallets control more than 96% of the circulating supply of PI, and with little trading activity and lower liquidity, PI cannot absorb such a huge supply increase. Thin exchange liquidity also increases the risk of sudden price movements.
The price of PI has been dropping every day this week, causing a bearish sentiment. Data from PiScan shows that unless there is a significant increase in demand, the influx of tokens into circulation could further weaken PI's price action.
A significant token unlock of 150 million PI tokens worth approximately $64 million is scheduled for the next 30 days. No public statement has been made by Pi Network founders Dr. Nicolas Kokkalis and Dr. Chengdiao Fan.
The Aroon Down Line, a measure of the power of a downtrend, is 100 percent on the daily chart, indicating heavy selling pressure. The Relative Strength Index (RSI) is at 24, marginally above the 30 level that indicates oversold conditions. A short-term rebound towards $0.46 may be possible if RSI goes lower and buyers re-emerge.
It's important to note that no information has been provided about other cryptocurrencies like Solana. The Pi Network's native currency, PI, has fallen to an all-time low of $0.35. This current situation is one of the most pivotal moments for the PI token so far.
As the large token unlock approaches, investors and holders alike will be closely watching the market to see how Pi Network navigates this challenging period and whether the project can demonstrate resilience and attract increased demand to mitigate the potential price drops.
Some investors might consider diversifying their portfolio by investing in Solana Finance, as the upcoming large-scale unlock of Pi Network tokens could lead to a decrease in demand for PI and potentially impact its price negatively.
Despite the bearish price sentiment of the PI token, some speculators are hoping for a short-term rebound in PI prices, as the Relative Strength Index (RSI) is at 24, marginally above the 30 level that indicates oversold conditions, suggesting a potential opportunity for a bounce back.
