PI is currently trading at around $0.58, down 10-15% over the past week and month
The token is trading 80% below its all-time high of $2.99
Trading volume has increased by 35% to $128 million, suggesting renewed interest
Token dilution with 131 million tokens released monthly presents a significant challenge
Breaking above the 50-day moving average at $0.82 is crucial for a trend reversal
Pi Network has been under significant pressure lately, failing to keep pace with the broader crypto market recovery. The token is currently trading at approximately $0.58, marking a decline of about 10% over the past week and 15% over the past month.
This represents a substantial drop from its all-time high of $2.99, with PI now trading roughly 80% below that peak.
Despite the price decline, there are some potential signs of renewed interest. Trading volume for Pi Network has increased by nearly 35% over the last day, surpassing $128 million.
PI Network $PI bounced off key support at $0.50 on Saturday with strong buying volume.
Bulls need to flip the Point of Control (highest volume since launch) at $0.65 into support for more upside.
This surge in volume amid falling prices could indicate accumulation at lower levels and revived interest in the token.
The technical picture remains challenging for PI. The token faces strong resistance at the 50-day simple moving average, which sits around $0.82.
PI is trading below several short-term moving averages, including the 10-day and 20-day, signaling a bearish trend.
Technical Indicators Showing Mixed Signals
The technical indicators for Pi Network present a mixed picture that may offer some hope for investors.
The Relative Strength Index (RSI) stands at 38.7, which suggests the token is approaching oversold territory but isn’t quite there yet.
The price is currently near the lower Bollinger Band, indicating possible oversold conditions and potential for a bounce.
The Moving Average Convergence/Divergence (MACD) is showing early signs of positive divergence, which could signal that buyers are slowly stepping in.
These indicators together suggest that while the current trend remains bearish, there are early signs that the selling pressure may be easing.
If PI can break above the 50-day SMA with strong volume, it could push toward the $0.85–$0.90 range.
A more significant rally past $1.00 would represent a major sentiment shift, especially if driven by substantial news or developments.
However, if prices remain below key moving averages and selling pressure continues, PI could retest support near $0.55 or even fall to $0.45, close to its historical low of $0.40.
The Chaikin Money Flow (CMF) indicator reveals that while Pi Network has seen some inflows, the reading remains in negative territory. This suggests that outflows still dominate, keeping downward pressure on the price.
Token Dilution: Pi Network’s Biggest Challenge
One of the most significant challenges facing Pi Network is token dilution. In April alone, 21.4 million new tokens were unlocked, valued at approximately $12.3 million.
An estimated 131 million tokens are expected to be released every month for the next 12 months. This continual increase in supply could exert persistent downward pressure on the price unless demand rises or the team takes action.
The Pi Foundation currently owns more than 70 billion PI tokens, valued at over $40 billion. A targeted token burn could help address dilution issues and potentially support the price.
Other potential solutions include implementing fee-burning mechanisms or adjusting the token release schedule.
According to Alvin Kan, COO of Bitget Wallet, Pi Network needs to focus on several key areas to enable sustainable growth: increasing liquidity through expanded exchange listings, creating valuable real-world applications, applying balanced token economics, and developing integrations with DeFi and retail sectors.
Another concern is Pi Network’s inverse correlation with Bitcoin, currently at -0.11. This means that as Bitcoin continues its ascent toward $100,000, Pi’s price could face additional pressure.
Upcoming Events Could Spark Recovery
Two major upcoming events could potentially trigger a Pi Network price recovery in May 2025.
The first is Token 2049, where Pi Network and co-founder Nicolas Kokkalis, who is a sponsor of the event, will have opportunities to connect with major exchanges like Binance, HTX, and KuCoin.
The second is the Consensus Summit scheduled for May 14-16, which could provide another platform for the Pi Network team to address fundamental issues and announce new developments.
For Pi Network to reverse its downtrend, it needs to breach the $0.8727 resistance level and turn it into support. This would open the path for growth toward $1.00 and invalidate the current bearish outlook.
May 2025 could be a crucial month for Pi Network. Even though the token remains under pressure, the team could use conference appearances to address key issues and announce new partnerships or developments.
While this may not be the time for Pi to experience dramatic price increases, it could be an important period for the project’s maturation and long-term growth.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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