Pi Network price faces a major hurdle in its attempt to recover in May amid the looming unlocks of $139M PI tokens

The Pi Network price faces bearish pressure as data from PiScan shows that 234 million PI tokens valued at approximately $139M will be unlocked in May.

The price of Pi Network (PI) may struggle to recover in May as 234 million PI tokens, valued at approximately $139M at press time, are set to be unlocked this month.

The unlocks, which will occur throughout May, may weigh on this altcoin and hinder its breakout from bearish trends.

At press time, Pi Coin trades at $0.59, marking a 3% decline in 24 hours. Trading volumes have also decreased by 50%, suggesting that the altcoin is stuck in a bearish trend due to a lack of interest.

Pi Network Price Forecast As $139M In PI Unlocks In May

The Pi Network price is facing bearish pressure as data from PiScan shows that 234 million PI tokens, valued at approximately $139M at press time, will be unlocked in May.

These unlocks may trigger a surge in sell-side pressure. Last month, a similar trend was observed when a large sum of unlocked PI tokens led to a downward price movement.

However, popular analyst Dr. Altcoin opined that despite these unlocks and speculation that Pi Coin is dying, the token would likely retain its strength as the developer team has been countering the unlocked PI entering exchanges.

“The PCT seems to have solid plans in place and has been absorbing as much Pi from CEXs as possible — helping to maintain the price above $0.50.”

Nevertheless, the PI token unlocks are not the only challenge facing the Pi Network price. The mining rate has surged by a slight 2% in May, meaning that more PI tokens are entering the circulating supply, which will also cause inflationary pressure and downward price movement.

Given the above headwinds that mainly point towards a surge in the supply, and the impact that this will have on the PI, it is clear that the Pi Network price prediction is bearish, and it may enter a downtrend.

PI Technical Analysis As Bearish Momentum Strengthens

The Pi Coin 2-hour price chart shows that the bearish momentum around this altcoin is growing strong, and the Relative Strength Index (RSI) clearly shows this. This indicator has been making a series of lower lows and has plummeted to 46, an indication that the downtrend will likely continue.

Amid the downward pressure, the first support level to watch is the 23.6% Fibonacci level of $0.58, and if it fails to hold this level, it may trigger the next bearish leg to $0.56. The Bollinger band indicators are also tightening, an indication that a breakout is looming. If such a breakout occurs, traders should watch out for an upward trend to the upper band of $0.62.

Considering the impact of the looming token unlocks and the bearish structure visible on the 2-hour chart, it is clear that the Pi Network price forecast is bearish, and traders should anticipate a downside movement. This bearish thesis will be invalid if PI can overcome the resistance level at $0.62.

Frequently Asked Questions (FAQs)

1. How will the upcoming $139M unlocks impact Pi Coin price?

The large-scale unlocks of PI tokens may exert bearish pressure on the altcoin's price and hamper its breakout attempts from the bearish trends.

2. Can Pi Network crash below $0.50?

The possibility of the Pi Network price dropping below the $0.50 psychological support level is slim.

3. Is the Pi Network price prediction bearish or bullish?

The Pi Network price prediction is bearish due to the upcoming token unlocks and the inflationary pressure that will be applied by the mining rate increase. However, if PI manages to break out of the Bollinger bands on the 2-hour chart and sustain gains above the 61.8% Fib level, it may signal a bullish trend.