Despite Small Gains, Pi Coin Remains Trapped Within a Tight Trading Range

Today, approximately 5.8 million PI tokens are scheduled to unlock, with a much larger wave — 223 million tokens — expected to be released over the next 30 days.

Pi Coin (PI) is showing modest gains of over 3% on the day, as the token remains confined within a tight trading range.

While the price has seen a small uptick, concerns are growing with the upcoming release of more tokens into the market in the coming weeks. Today, about 5.8 million PI tokens are set to unlock, with a much larger wave of 223 million tokens expected over the next 30 days.

This influx of supply could heighten downward pressure on the price, especially if strong buying demand fails to materialize.

At the time of writing, Pi is trading at around $0.66, a crucial level for bullish traders. If the price can close above this point on the daily chart, it could pave the way for a potential rally towards $1 or higher.

But if this support level is lost, we could witness further declines in the price, especially with token unlocks putting additional supply into circulation.

Since its listing in February, Pi Coin has experienced significant price fluctuations. At its peak, the token soared to highs of $3, only to plummet to lows around $0.40.

This downturn has left many early supporters and miners, particularly those who joined Pi's journey in 2019 and 2020, feeling disappointed.

Several factors have been attributed to Pi's persistent price struggles.

Like many airdropped tokens, Pi faces substantial sell-offs after token generation events. A significant portion of its user base, especially in Africa and Asia, has been quick to sell their tokens for cash, leading to increased supply pressure.

Moreover, Pi boasts a massive circulating supply of over 6.9 billion tokens, with a total supply cap set at nearly 100 billion. In contrast, Bitcoin has a capped supply of 21 million.

Considering this vast difference in supply, achieving high price targets like $100 or even $10 for Pi seems improbable in the current market scenario.

While Pi's vision includes becoming a widely-used medium of exchange, its real-world usage remains limited. A few businesses do accept Pi, but broader adoption is still pending, which might limit the demand for the token beyond mere speculation.