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Pi Network Price Outlook: 19.2M Token Unlock Could Trigger Bearish Trend - Cryptured.com
Pi Network (PI) has recovered by 1% following six straight bearish candles. While feelings are still subdued after the Pi2Day announcements, the technical viewpoint points to a bearish tendency in the days preceding July’s largest token unlock.
The biggest token unlocked by Pi Network in July
On July 4, 19.2 million PI tokens will be unlocked, making it the biggest unlock of the month, according to PiScan statistics. Unlocking tokens usually increases the supply on the market, increasing the likelihood of a sell-off in the days following the occurrence.
A prior study by FXStreet indicates that the July token unlocks, which totaled 268.4 million PI tokens, were the largest monthly unlocks until October 2027.
AI-Powered No-Code Pi App Studio Debuts on Pi2Day
Pi App Studio, a no-code platform to enhance its ecosystem, was made available by Pi Network on Saturday’s much-anticipated Pi2Day. Ecosystem Directory Staking, which involves staking Pi tokens on the mainnet, was also introduced by the network to help apps rank higher.
Despite several other small changes, Pi Network’s spot market performance was not improved by the Pi2Day announcements.
Pi Network Faces Potential Drop Toward $0.40
After losing money for six days, Pi Network is now up over 1% as of Wednesday. Last week, Pi Network hit a high of $0.6667, but it soon lost the gains, bringing its weekly gain to just 5.94%.
A possible daily closure below the declining trend’s low point of $0.4711, which was challenged twice on April 5 and June 13, might prolong the decline to $0.4000, a support level.
Notably, a daily close below $0.5031 increases the likelihood of a collapse below $0.4711 because it represents the lowest closing price since February.
The oversold threshold is closer to 36, where the Relative Strength Index (RSI) shows greater selling pressure.
If the market as a whole rebounds, PI may reverse towards the $0.6600 price level, which was the lowest price on May 17. This would be indicated by a lower shadow candle.