Pi Network (PI) hit an all-time low around $0.07060 on July 14.
The altcoin rebounded over 16% the next day, but the recovery quickly faded. The token then dropped nearly 12% in 24 hours.
Trade volume also decreased by approximately 13% to $23 million. Token unlocking and profit taking may have contributed to the renewed weakness.
Why did PI drop again?
Data from PiScan showed that major token releases will open daily, with the highest release this week occurring on July 16. That means more than 7 million PIs worth over $527 thousand will be released, adding to the 5,181 million tokens unlocked the previous day.
Over 24 million PIs will be released in the next five days, leading to massive sales pressure. An average of 4.25 million PIs worth over $315K are unlocked every day.
Profit taking may have added to the pressure following the PI’s recovery from its record low. The recovery briefly pushed the PI to $0.085.
This move left dip buyers taking profits and potentially spurring some traders to exit. PiScan also recorded small swaps into Bitcoin (BTC), XRP, and Tether (USDT).
Still, the available data did not reveal whether these swaps significantly affected the market price of PI.
Can the protocol v25 support PI?
PI’s technical structure continued its bearish trend after the token fell below its three-week trading range.
Held between December 5 and June 29. The PI then formed several lower peaks on the four-hour chart. The latest rejection pushed the PI back to an all-time low. It was trading around $0.07312 when the chart caught up.
Additionally, the Cumulative Volume Delta (CVD) reflects strong sales in OKX. The chart recorded approximately 18.65 million PI in net sales.
The Directional Movement Index (DMI) supported this bearish structure. The Negative Direction Indicator was at 22, above the Positive Direction Indicator at 14.
This setup suggested that the sellers maintained control and left the PI vulnerable to another lower top.
However, Pi Network has scheduled the Protocol v25 upgrade for July 22. The update targeted network stability, reliability and privacy protection features.
The upgrade could improve sentiment, but its impact on demand remains unclear. Ongoing unlocks and broader market weakness could limit any recovery.
Final Summary
- Pi Network dropped more than 12% in 24 hours due to the impact of massive token unlocks and profit taking.
- PI continues to create new lower highs, but the Protocol v25 upgrade may halt this trend.
