Pi Network Price Rises 4% Amid Recovery
Pi Network (PI) price rose 4% on Monday. This marks the third day of gains after bouncing off the $0.20 support level. Despite this short-term rise, PI faces risks of further drops. Outflows from the Pi Network Foundation wallet and liquidity reserves may increase selling pressure.
Pi Network Faces Supply Challenges
Pi Network has 8.27 million tokens in circulation. Most tokens are held off exchanges. Data from PiScan shows Centralized Exchanges hold 417.20 million PI tokens. This means most selling happens outside exchanges.
- On Sunday, 50 million PI tokens left Foundation wallet #11.
- These tokens were moved to Foundation Wallet #2 for community distribution.
- Another 50 million PI tokens moved from the liquidity reserve but remain in a separate wallet.
These outflows from core team wallets could add to the available supply and increase selling pressure.
Technical Outlook: Can Pi Network Continue Its Recovery?
Pi Network price fell 13% on Friday to a low of $0.1533. It then recovered to close at $0.1996. At press time, PI trades above $0.2150, suggesting a possible V-shaped recovery.
If the price stays above $0.20, the next resistance is at $0.2755, the central Pivot Point level.
The Relative Strength Index (RSI) is at 28, showing the token is oversold but starting to recover. The MACD indicator is near a potential bullish crossover, which could signal more gains.
Key support levels to watch are $0.20 and the S1 Pivot Point at $0.1731.
