Pi Coin faced intense selling pressure this week, plunging to $0.3495 after a wave of token unlocks flooded the market.
On August 1, more than 19 million PI entered circulation, part of a larger 72 million token release projected for the week. This influx swelled the total circulating supply to 7.76 billion, echoing past patterns where large unlocks—such as the 8 million tokens in May—triggered drops of over 30%.
The market’s reaction was swift. Pi fell over 13% in the past 24 hours, with trading volume surging by 82% to $157.7 million, highlighting clear sell-side dominance.
Technically, the situation remains precarious. The RSI (14) has plunged to 26.59, its most oversold reading since June, yet no bullish divergence has formed. The price has also broken below key Fibonacci support at $0.389, sliding toward the $0.35 zone. The MACD histogram deepened into negative territory, confirming accelerating bearish momentum. Analysts warn that without a strong reversal, Pi could slip further toward $0.30–$0.32.
The downturn isn’t isolated to Pi. Altcoin market sentiment remains weak, with the Altcoin Season Index at just 36 as Bitcoin dominance rises. Pi’s correlation with BTC stands at -0.27, showing it’s moving out of sync with broader crypto trends. The lack of Tier-1 exchange listings, such as Binance or Coinbase, continues to cap liquidity and limit institutional interest.
This combination of oversupply, weak market sentiment, and structural liquidity constraints has created a negative feedback loop—falling prices push miners and traders to exit, which in turn fuels more selling.
For now, traders are closely watching the $0.32–$0.35 support range. If this zone holds, Pi could stabilize into a consolidation phase. However, a clean break lower risks triggering a sharper panic-driven selloff. With daily token unlocks set to slow to 5.3 million in September, market watchers hope the reduced supply pressure could give Pi some breathing room.
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Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.