Pi Network Faces Downward Pressure Amid Token Unlock and Integration Delay
Pi Network (PI) is experiencing a decline, trading below $0.4200 after a daily high of $0.4364. This downward trend, ongoing since mid-May, is intensifying due to an upcoming token unlock in August and a delay in Onramp Money’s integration of PI. This combination of factors paints a bearish picture for the cryptocurrency.
Large Token Unlock Looms
Data from PiScan indicates that 161.6 million PI tokens will be unlocked in August, increasing the circulating supply by 2.09%. This is the largest monthly unlock until December, when 170.5 million tokens will be released.
“Investors hoping for a PI reversal should be cautious, as token unlocks often lead to increased selling pressure.”
This influx of tokens could allow investors to take profits, potentially driving the price down further.
Onramp Money Integration Delayed
Onramp Money announced that the integration of PI is still in progress. This integration would allow users to purchase PI tokens directly with fiat currency. The official launch is now expected in the second or third week of August.
Until the official announcement, users are advised to avoid purchasing PI through Onramp Money. The Pi Network app currently shows integration alternatives by Banxa and TransFi, though no official announcement has been made by Pi Network.
Key Support Level at Risk
Pi Network has fallen more than 17% in July. It is approaching its all-time low of $0.4000, last tested on June 13.
The Relative Strength Index (RSI) on the daily chart is at 35 and trending downward, suggesting a decrease in buying pressure. The Moving Average Convergence Divergence (MACD) line is nearing a cross below its signal line, which, along with the emergence of red histograms, could signal a sell-off.
Potential Price Targets
- A break below $0.4000 could lead to a drop to the S1 pivot level at $0.3837.
- Further decline could target the S2 level at $0.2585.
To reverse the downward trend, PI needs to reclaim the $0.5000 level.
FAQ: Cryptocurrencies Explained
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization. It’s a virtual currency designed to function as money, free from control by any single entity. This eliminates the need for third-party involvement in financial transactions.
What are Altcoins?
Altcoins are any cryptocurrencies other than Bitcoin. Some consider Ethereum not to be an altcoin. Litecoin was the first altcoin, forked from the Bitcoin protocol.
What are Stablecoins?
Stablecoins are cryptocurrencies designed to maintain a stable price. Their value is typically backed by a reserve asset, such as the U.S. dollar. The goal is to provide a stable entry and exit point for investors in the cryptocurrency market.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies. It reflects investor interest in Bitcoin. High Bitcoin dominance often occurs before and during bull markets. A decline in Bitcoin dominance suggests investors are shifting capital to altcoins.
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