Recent price declines have left Pi Network investors in a state of concern.
The cryptocurrency recently fell below the psychological threshold of $0.8, dropping to around $0.79. With a daily loss of approximately 3%, market sentiment appears to be weakening. The thought that prices might dip further in the near future is heightening investor anxiety. However, long-term optimistic expectations still linger despite the price drop. Particularly, the impending token unlock and increasing supply pressure are prompting investors to reassess their short-term positions.
Token Unlock and Market Response
The upcoming token unlock by Pi Network is generating significant discussion among investors. It is estimated that around 105.96 million new Pi tokens will enter the market within the next 30 days. This translates to an average daily increase of 3.5 million in liquidity. Such a surge in supply could exert pressure on prices in the short term.
The token unlock is not only affecting short-term supply but also shaping investor psychology. The potential selling pressure from the increased number of tokens is leading investors to adopt more cautious and short-term strategies. Many believe that the price could test levels below $0.77 again.
Experts Discuss Risks and Opportunities
Expert commentary continues to serve as a vital resource for investors seeking to clarify market outlooks. Well-known Twitter analyst bullstraders7 highlighted the risk of Pi Network’s price dropping to $0.6. Such a scenario could result in significant losses for short-term investors. However, some experts view these declines as buying opportunities.
For instance, Coinvo pointed out strong buying signals indicated by RSI deviations in Pi Network. According to Coinvo, the current price range aligns with Fibonacci support levels, strengthening the likelihood of a price recovery. Although the market is experiencing a downward trend, technical signals suggest various potential scenarios.
Long-term investors still maintain confidence in the project. Particularly, the strength of the Pi Network community and its potential use cases turn this downturn into an accumulation opportunity for some investors. However, it is advised that investors act flexibly and cautiously according to supply increases and market sentiment.
