PI faces dual pressure: Weak buying force amid the context of 152 million USD tokens about to be unlocked

The price of PI is going through a difficult phase as it continuously loses its bounce back over the past week, recording a fall of nearly 20% in just seven days.

As of the time of writing, this altcoin is trading around the $0.48 mark, under increasing selling pressure. Both technical indicators and on-chain data indicate that a pessimistic sentiment is prevailing in the market, making the short-term outlook for PI bleak.

Bearish signal

The MACD indicator ( Moving Average Convergence Divergence ) of PI has just recorded a new bearish crossover – a technical signal indicating that the downtrend may continue in the short term. Specifically, the green MACD line ( has crossed below the orange signal line ), indicating that the previous uptrend is gradually being broken.

The MACD indicator on the daily PI/USDT chart | Source: TradingViewMACD is a popular analysis tool that helps traders identify trends and measure price momentum. The crossover points between the MACD line and the signal line are often seen as early indicators for buying or selling actions.

In the case of PI, the MACD line crossing below the signal line reflects an increasing selling pressure while the buying pressure has clearly weakened. This is seen as a strong sell signal, leading many traders to intensify their profit-taking activities. If the selling momentum continues to accelerate after this signal, the downward pressure on PI will become even stronger.

Not stopping at the current price fall pressure, PI is about to face another serious risk: a large-scale token unlock will take place next month. According to data from PiScan, approximately 312.29 million PI tokens — equivalent to 152 million USD at the current price — will be released in the next 30 days.

Pi Unlock Chart | Source: PiScanThis is a major test for the market's endurance, especially when the positive sentiment towards PI is low. In the context of weak demand, absorbing such a massive supply will become extremely difficult.

If demand is not strong enough to balance the sudden increase in supply, the PI market may fall into a state of serious imbalance. At that point, selling pressure will increase significantly, pushing the price of PI into a deeper downward spiral.

PI falls back to a downtrend – Do buyers appear before the $0.40 mark?

On the daily timeframe, PI has once again slipped back to the downtrend line after a failed breakout attempt. Specifically, on June 25th, this token had risen above the trend line, opening up hopes for a bounce back. However, the upward momentum quickly faltered due to weakening buying pressure, causing the price to reverse and re-establish the previous negative trend.

Daily PI/USDT Chart | Source: TradingViewWith the ongoing fall, PI faces the risk of retreating to its historical low around the $0.40 level.

However, there is still hope if a new strong demand force appears. In this positive scenario, the price of PI could stabilize again, thereby neutralizing the current negative signal and opening up the opportunity to bounce back to the important resistance area around $0.57.

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