Pi network Faces Steep Decline Amid Token Unlocks
Pi network’s price has been on a downward spiral for four months, hitting a new low in September. Investors have been hesitant, causing the price to plummet to $0.186, a 95% drop from its peak.
The main reason for this decline is Pi’s high inflation rate. With a supply limit of 100 billion tokens and only 8.2 billion currently in circulation,the remaining 91 billion tokens will be unlocked or mined over time. This massive supply increase is putting pressure on the price.
In October,Pi Network will unlock 138 million tokens,valued at over $35 million. further unlocks are scheduled for November and December. Thes token unlocks typically lead to a bearish market as they increase the supply, especially when demand is low.
Another factor contributing to Pi’s decline is its failure to create an active ecosystem. While there are dApps in the ecosystem, none have gained mainstream adoption. Though, there’s a glimmer of hope. A whale has accumulated millions of tokens recently, suggesting a potential rebound.
Technical analysis shows Pi’s price has been in a freefall. It has moved below the lower line of the descending triangle pattern and all moving averages. this suggests continued pressure in October. Though, a short squeeze could occur if there’s a major announcement, like an exchange listing.
