Pi Network price has crashed from this month’s high of $1.6692 to the current $0.7720, lowering its market cap from over $10 billion to $5.5 billion today. Its market cap has dropped by almost $4.5 billion from its all-time high. This article explains why the Pi Coin may crash by 30% this week as it unlocks 72 million coins.
Pi Network Price Technical Analysis
The eight-hour chart shows the Pi Coin price has had a strong sell-off in the past few weeks. The coin has crashed below the 50-period Exponential Moving Average (EMA), a sign that bears have prevailed.
Most importantly, Pi has formed a bearish flag pattern, characterized by a sharp price decline followed by a period of consolidation. It has also formed a rising wedge chart, a popular bearish continuation sign.
Pi is also slowly forming a small bearish continuation pattern slightly below the lower side of the wedge. Also, the Relative Strength Index (RSI) and the MACD indicators have moved below the neutral levels.
Therefore, the most likely scenario is where the Pi Network price initially falls to the flag’s lower side at $0.6585. A move below that price will point to more downside, potentially to $0.5545, its lowest level on April 29.
READ MORE: 3 Possible Pi Network News to Watch Today, and Impact on Pi Coin Price
Pi Coin Unlocks Ahead
One of the most bearish catalysts for the Pi Coin is that token unlocks will continue this week. Data shows that 72 million tokens valued at over $55 million will be unlocked this week alone. It will also unlock 278 million coins in the next 30 days, with a daily average of 9.26 million.
Token unlocks are bearish because they increase the number of coins in circulation or the total supply. If supply increases when there is no major bullish catalyst, the price will likely fall.
Pi Network has other bearish catalysts; for example, the developers noted adding five more applications to the Pi ecosystem after passing the verification process. While this is a good thing, chances are that the Pi ecosystem will not gain traction as long as it is limited to the Pi Browser.
For most people, going through this process is not worthwhile. Instead, Pi should allow developers to list their games and applications on platforms like Android and iOS.
Pi Network is also highly centralized and is currently facing accusations that the foundation has been dumping tokens.
READ MORE: Pi Network Price Prediction: Major Risk Makes Pi Coin Uninvestable
