Pi Network's native token continues its volatile journey in cryptocurrency markets, now showing potential signs of recovery after dropping more than 30% on a weekly scale. The token, which experienced dramatic price swings since its February 20 launch, has retreated from earlier highs that briefly positioned it near the top 10 cryptocurrencies by market capitalization.
Technical analysts and community watchers point to changing supply dynamics that may reverse the token's recent downward trend. Once trading at an all-time high of $3 after its initial release, PI has since experienced significant volatility, including a drop from $1.8 to $0.7 in its early trading days. The asset currently ranks 26th by market capitalization, having lost substantial ground since its peak performance.
A Pi Network-focused channel from Vietnam identified the price decline as potentially connected to the substantial volume of unlocked PI tokens during the first month of trading. "The supply continues to decline and is down to 6.7 billion from 7.2 billion," the team explained in their analysis. This represents a significant reduction in available tokens since the network's official launch.
Further complicating the supply picture, approximately 5 billion PI tokens remain locked as many network users haven't completed required verification procedures. The actual circulating supply stands at roughly 1.7 billion tokens, according to the Vietnam-based channel.
The team projected a substantial decrease in newly unlocked tokens for the coming month. "The number of unlocked PI tokens for the next month should decrease significantly, from 13M PI per day to 3.8M/day," they concluded in their assessment. This 70% reduction in daily token unlocks could prove crucial for price stabilization if demand remains consistent or grows.
Market analysts suggest that reduced token unlocking rates typically create favorable conditions for price recovery in cryptocurrency markets. With fewer new tokens entering circulation daily, existing supply-demand dynamics may shift toward price appreciation, especially if project development continues to attract investor interest.
Technical chart patterns also indicate potential positive movement for the PI token. A prominent analyst on X (formerly Twitter) observed that the PI/USDT trading pair had been "confined within a falling channel, facing repeated rejections at the upper trendline while finding strong support at the lower edge." The analyst noted that recent trading showed a breakout from this descending pattern "with notable momentum," potentially signaling a trend reversal.
The same analysis highlighted that a previous resistance level has been reclaimed and converted to a support line. This technical development "reinforces the bullish sentiments and could lead to a surge to $2 soon," according to the market observer's assessment shared on social media.
These technical indicators, combined with the projected reduction in token unlocking rates, provide the framework for potential price recovery that market participants are closely monitoring. The project's large community base, which waited through years of development before the February launch, remains a significant factor in the token's market performance.
As with many cryptocurrency projects, Pi Network continues to generate divided opinions within the broader digital asset community. While skeptics point to the substantial price decline from early peaks, supporters emphasize the technical patterns and supply adjustments that may signal a coming reversal in the token's market trajectory.