- Trading volume rose 24.19% to $113.3M, signaling increased short-term market activity.
- Technical charts show Pi facing resistance at $0.515, with support holding near $0.470.
- 40M PI tokens set to unlock by July 1 may dampen bullish sentiment around the Pi2Day event.
Pi Network token was trading at $0.5039 on June 23, after a steep fall over the weekend. The recent volatility of the asset can be attributed to a combination of macroeconomic shocks and internal expansion of the token supply. The token’s market cap stands at $3.77 billion, with a daily increase in volume of 24.19% to $113.3 million, as traders continue to watch for the upcoming July 1 unlock.
Token Unlock Events Pressure PI Price
The current price of Pi Coin remains under pressure after the 11% drop on June 22, which pushed it close to its all-time low. The fall is attributed to the recent introduction of 263 million PI tokens into circulation, which triggered considerable selling pressure. Records indicate such declines in the wake of previous unlocks, with liquidity soaring and being followed by an increase in supply.
Another 40 million worth of PI tokens are expected to be unlocked by July 1, leading to more concerns about price slippage. Traders cite a long-term imbalance between expanding supply and relatively flat demand. Traders remain cautious about dilution, as the fully diluted valuation of the token is currently $50.39 billion, compared to its cap of $3.77 billion.
Meanwhile, founder Dr. Nicolas Kokkalis addressed market concerns, stating that Pi’s price movement mirrors the broader crypto downturn. He has assured the community of more than 50 million network users that the development is steady, with the Open Mainnet and exchange listing yet to be implemented. As Kokkalis stated, the Enclosed Mainnet phase would entail restrained speculative effects, and the current price volatility is viewed as transitional rather than terminal.
Technical Analysis Shows Bearish Continuation Risk
From a technical perspective, the 4-hour chart on Tradingview shows Pi Coin trading in a consistent downtrend since reaching a high of $0.7964 on May 26. The asset has recorded lower highs and lower lows, with its most recent bounce failing to break the $0.515 resistance level. The current support sits near $0.470, with stronger downside risk toward $0.3969 if bears regain control.
Pi demonstrated slight strength on the intraday chart by recovering from a low price of about $0.474 on the daily timeframe. The recovery had caused the price to rise briefly above $0.510, but it stabilized at 0.5036. Although the bounce held, the failure to hold above $0.515 suggests that sellers remain in control.
An upward trend could take the price past $0.515, with subsequent maintained volume indicating a potential change. Nonetheless, the inability to maintain current positions will see Pi falling back to earlier support areas at around 0.445 or even weaker.
Related: XRP Drops Below $2, Even with 452K Active Addresses: Report
Market Outlook Hinges on Pi2Day and July Unlock
As the community awaits Pi2Day on June 28, there is a possibility that a subsequent unlocking of tokens will eclipse the bullish news surrounding it. Historical trends indicate that Pi can experience a rally on positive news, as it did in May when it rose 175%. Nonetheless, the lack of defined exchange listings and the growing CEX supply at 362 million PI are issues of concern in the future.
A mixed market mood characterizes current conditions, as heightened trade activity indicates interest, but the disparity between circulating and total supply remains a concern. The price of Pi Coin in the next few weeks will strongly depend on the sustainability of technical support and the emergence of new demand.
