Pi Network Price Plummets: Unpacking the Crucial Factors Behind the PI Token Dip

The cryptocurrency world is often a roller coaster of emotions, and for holders of Pi Network’s native token, PI, the ride has recently taken a sharp downturn. The Pi Network price has seen a significant correction, dropping approximately 10% over two trading sessions. This dip brings the asset dangerously close to its historical low, raising concerns among investors and analysts alike. What exactly is fueling this decline, and what does it mean for the future of the PI token? Let’s delve into the crucial factors at play.

Pi Network Price Plunge: What’s Driving the Downturn?

The recent price action for Pi (PI) has been a cause for concern, with the token trading near $0.44 as of July 25, 2025. This 10% drop has pushed PI within 9% of its all-time low of $0.40, signaling a challenging period for the asset. Several key indicators highlight the growing selling pressure:

• Breached Support: The price breaking below the crucial $0.45 support level indicates waning buyer interest and a shift in market control towards sellers.
• Market Valuation: Despite its current valuation at $3.4 billion, placing it 35th in cryptocurrency rankings, the underlying metrics are less optimistic.
• Diminished Liquidity: A significant contraction of 38% in 24-hour trading volume, down to $60.8 million, points to reduced investor activity and liquidity. Lower liquidity often exacerbates price swings, making recovery more challenging.

These factors combined create a challenging environment, making it difficult for the Pi Network price to find stable ground.

Understanding the Impact of Massive PI Token Unlocks

One of the most significant contributors to the recent price depreciation is the scheduled release of a substantial amount of PI token supply into circulation. These planned token unlocks are a critical event for any cryptocurrency, as they can flood the market with new supply, often leading to selling pressure if demand doesn’t keep pace. For Pi Network, the figures are substantial:

• Recent Release: Starting July 4, a staggering 304.7 million PI tokens, valued at approximately $152 million, entered circulation over 30 days. The largest single-day release occurred on that date.
• Upcoming Unlock: Another significant unlock is set for July 28, with 10.8 million tokens scheduled for release. This marks the biggest one-day release in the coming month, potentially adding further downward pressure.
• Immediate Selling: Evidence of these unlocks triggering selling can be seen in the 704,237 PI deposited into Centralized Exchange (CEX) wallets within 24 hours of recent releases. Traders often move tokens to exchanges to sell them, anticipating or reacting to fresh supply.
• Exchange Concentration: A concerning detail is that Gate.io alone holds 194 million of the 401 million PI on exchanges, amplifying concerns about liquidity absorption and potential concentrated selling.

Such inflows to exchanges are frequently a precursor to price declines, as profit-taking and fresh supply entering the market combine to push prices down.

Bearish Sentiment and Liquidity Concerns in the Crypto Market

Beyond the supply-side dynamics, broader market sentiment and on-chain data underscore a pervasive bearish sentiment surrounding the PI token. On-chain analytics provide a deeper look into investor behavior:

• CEX Outflows (Net): PiScan reports a net outflow of 788,000 PI from centralized exchange wallets in the past 24 hours. While outflows *can* sometimes signal holding, in this context, coupled with Foundation sales, it suggests complex dynamics, potentially including users moving tokens to private wallets after selling, or a general lack of fresh buying interest on exchanges.
• Foundation Sales: Critically, the Pi Foundation’s address, “Pi Foundation 2,” sold nearly 7.96 million tokens during the same period. This significant distribution from the project’s own address further contributes to the selling pressure and can be interpreted as a lack of confidence from the project’s side or simply planned distribution.

Technical indicators also reinforce the downward trajectory, mirroring the overall cautious tone in the broader crypto market:

• RSI Below 50: The 4-hour Relative Strength Index (RSI) for PI has dropped below 50, settling in the high 30s. This is a classic bearish signal, indicating that selling pressure is dominant.
• MACD Below Zero: The Moving Average Convergence Divergence (MACD) oscillator has dipped below zero, with expanding red bars. This signals accelerating sell momentum and confirms the bearish trend.

The confluence of these on-chain and technical signals paints a clear picture of prevailing bearish sentiment, making a quick rebound challenging.

Navigating the Current Pi Network Volatility: What’s Next?

The immediate outlook for the Pi Network price remains challenging. With the price closing below $0.45, critical support levels are now exposed at $0.437 and the historical low of $0.40. A decisive break below $0.437 could lead to tests of $0.420 or even lower, putting further pressure on holders.

For bulls to regain control, a sustained rebound above the $0.45–$0.46 range with strong buying volume would be necessary. While some models suggest a potential rebound to $0.49–$0.51 if buyers manage to reclaim this range, current on-chain flows and the broader market breadth strongly favor further downside in the near term. The $0.43–$0.45 zone will be a critical battleground for sellers to test buyers’ resolve.

Investors should exercise caution and closely monitor these key levels, as the combination of significant supply unlocks, diminished liquidity, and overwhelming bearish sentiment creates a volatile and potentially risky environment for the Pi token.

Conclusion:

The recent 10% dip in Pi Network’s token price is a clear signal of growing pressure from multiple fronts. The massive scheduled token unlocks are flooding the market with supply, while on-chain data and technical indicators confirm a strong bearish sentiment. As the PI token teeters near its historical low, the immediate future appears challenging, with key support levels under intense scrutiny. The coming days will be crucial in determining whether the token can find a bottom or if further declines are on the horizon. For now, vigilance and careful observation of market dynamics are paramount for anyone involved with Pi Network.

Frequently Asked Questions (FAQs)

Q1: What caused the recent 10% dip in Pi Network’s token price?

The recent 10% dip in the Pi Network price is primarily attributed to a combination of factors: significant scheduled token unlocks releasing large amounts of PI into circulation, leading to increased selling pressure; a contraction in 24-hour trading volume signaling diminished liquidity; and a prevailing bearish sentiment reinforced by on-chain data showing net outflows from exchanges and sales by the Pi Foundation.

Q2: How do token unlocks affect the PI token’s price?

Token unlocks introduce new supply into the market. When a large volume of tokens becomes available, it can lead to increased selling pressure, especially if demand does not grow proportionally. This often results in price depreciation as traders and early investors might sell to realize profits or reduce risk, thereby increasing the circulating supply and diluting the token’s value.

Q3: What does ‘bearish sentiment’ mean for Pi Network?

‘Bearish sentiment’ indicates that investors and traders generally expect the price of an asset, in this case, the PI token, to fall. This sentiment is evidenced by technical indicators like the RSI falling below 50 and the MACD showing accelerating sell momentum, as well as on-chain data suggesting distribution and a lack of strong buying interest. It creates a self-fulfilling prophecy where fear of falling prices leads to more selling.

Q4: What are the critical support levels for the Pi Network price?

Following the breach of the $0.45 support level, the immediate critical support levels for the Pi Network price are $0.437 and its historical low of $0.40. A decisive break below $0.437 could potentially trigger further declines, possibly testing $0.420 or even lower. Reclaiming the $0.45-$0.46 range with strong volume is essential for a potential bullish reversal.

Q5: Is the Pi Foundation selling its tokens?

Yes, according to on-chain analytics from PiScan, the Pi Foundation’s address, “Pi Foundation 2,” sold nearly 7.96 million tokens during the same period of the recent price dip. This suggests ongoing distribution from the project’s side, contributing to the overall selling pressure in the market.