Pi Network Price Drops Amid Rising Selling Pressure
Pi Network (PI) price fell 3% on Wednesday, after a 6% drop the day before. Large transactions and technical signals show strong selling pressure. This may push the price down to the $0.2000 level.
Supply Pressure Increases on Pi Network
Retail interest in Pi Network is falling as many users move tokens to Centralized Exchanges (CEX). PiScan data shows two large transfers of 532,434 PI and 473,426 PI tokens to exchanges. Tokens moving to exchanges usually add to supply pressure.
However, CEX reserves dropped by over 1.37 million PI tokens recently. This suggests most selling pressure comes from direct on-chain transfers, not exchanges. Out of 8.246 billion PI tokens in circulation, only 428.26 million PI (about 5%) are held by CEXs, according to FXStreet.
Pi Network Faces Risk of Further Losses
Pi Network trades below $0.2400, marking its third week of losses. It failed to recover during last week’s market rebound and fell again with the broader market. This shows weak investor confidence.
If the downtrend continues, PI may find support at $0.2259 and $0.2113. The price could also test the key psychological level of $0.2000.
Despite upcoming DeFi features like a Decentralized Exchange, Automated Market Maker, and token creation tools, unclear launch dates and ongoing updates to the Stellar protocol keep investors cautious.
Technical indicators on the 4-hour chart show strong bearish momentum. The Relative Strength Index (RSI) is at 23, indicating oversold conditions. The MACD also shows rising selling pressure with increasing red bars and falling averages.
On the upside, any price bounce may face resistance at $0.2404 and $0.2505.
