Pi Network price had an eventful performance in May this year as investors reacted to the latest Kraken listing, Pi Day event, core update, and validator rewards distribution. The token initially jumped to a high of $0.2973 on March 13 and then pulled back to the current $0.1735.
Pi Network Price on Edge Ahead of 200 Million Unlocks
Pi Coin will have a few catalysts in April this year. A major catalyst will be the upcoming 200 million token unlocks that will happen during the month. At the current price, these tokens are valued at over $34 million, which are equivalent to 2% of the total market capitalization.
Pi Network will then unlock 79 million tokens in May this year, followed by 82.4 million in the following month. It will unlock over 1.62 billion tokens worth over $280 million in the next 12 months. The average monthly unlock will be 18.5 million tokens.
Token unlocks are usually bearish because they increase the amount of tokens in circulation. In most cases, crypto projects offset this situation by burning and executing buybacks. A good example of this is Hyperliquid, which uses most of its fees to burn and buy back its tokens.
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Pi Network does not have a buyback mechanism to offset the daily unlocks. CoinMarketCap data shows that it has a circulating supply of over 9.9 billion tokens against a total supply of 100 billion tokens, meaning that billions of tokens will be released in the next few years
Pi Network price has some potential catalysts in April. For example, the second migration will continue during the month, a move that will bring in more tokens to the mainnet. Over 119k pioneers have already moved their tokens to the mainnet as the gradual rollout continues.
The network will continue its core update, with the current phase of Protocol 21 ending on April 22. The hope is that the other phases will complete in May this year, a move that will bring smart contracts to the network.
Pi Coin Price Prediction: Technical Analysis
The daily timeframe chart shows that the Pi Coin price has crashed in the past few weeks, moving from the May high of $0.2982 to the current $0.1795. The token has dropped below the 50-day and 100-day Exponential Moving Averages (EMA).
Pi Coin has also formed a head-and-shoulders pattern, a common bearish reversal sign in technical analysis. It has also dropped below the Major S&R pivot point of the Murrey Math Lines tool.
Therefore, the most likely scenario is where the Pi Network token continues falling in April, potentially to the year-to-date low of $0.1310, which is about 25% below the current level.
On the positive side, the coin has formed a falling wedge pattern, which may lead to a bullish breakout during the month.
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