PI Crypto Faces Breakdown Risk as Price Dips Below Key Support Zone

Key Insights:

• PI crypto broke triangle support and may fall to $0.26 if bears confirm close below $0.44.
• Supply will exceed 8B tokens after this month’s 130M unlock, increasing sell pressure.
• Analyst finds the breakout potential over $1.95 in case of liquidity and volume improvement.

PI crypto is under pressure as the price struggles below its 50-day moving average and breaks down from a bearish triangle pattern. Technical analysis also indicated that the asset could be on the way towards a steep fall unless it rallies to break key resistance levels. As there are not many bullish confirmations and the selling action is increasing, traders are anticipating additional losses.

PI Crypto Confirms Bearish Breakdown Toward $0.26

PI crypto recently confirmed a downside break from a bearish triangle, raising the risk of a 40% price drop. Analyst Kosass Nakamoto stated that the triangle would signal a downturn to the $0.26 level, provided that the current support at $0.44 is tested firmly. Two consecutive closes below the level may validate the bearish target.

For over a month, PI crypto has failed to reclaim the 50-day simple moving average. The constant lack of strength beyond this level has given sellers control. RSI levels are trading flat at 35, indicating weak momentum, and there is no buying interest.

However, a rebound in price above short-term resistance after reclaiming the 50-day SMA would change the sentiment. A high volume and a close above $0.50 could break the pattern and clear the path towards $0.74. For now, the chart remains biased toward further downside.

Token Supply Growth Weakens Buy Pressure

On-chain data from PiScan revealed additional pressure on PI crypto price structure. As of the time of writing, the token was traded at around $0.435, with a total market cap of $3.35 billion. The circulating supply is now above 7.71 billion tokens, and another 130 million will unlock in the following weeks. This would drive the circulating volume to above 8 billion.

The maximum supply of tokens was 11.86 billion, with 5.2 billion tokens locked. That locked number is slowly declining, and this keeps diluting value, especially to those who hold now. Demand has not increased to the same extent, and price is finding it difficult to move higher.

As a result, its volume and trading remain low as it does not have listings on a centralized exchange. Although the interest of the community remains great, the rise in supply is surpassing investor interest. However, the absence of new sources of demand and sinks of tokens will probably continue to put pressure on the downside.

User Recovery Feature Launches to Aid Ecosystem

In a positive development, Pi Network has launched email-based account recovery to improve user access. The new feature enabled users to recover their accounts through four steps using their registered email and phone number. This helps to eliminate the chances of losing tokens because of misplaced devices or credentials.

The update was widely welcomed by the Pi community. The proponents termed it as significant in mass adoption and retention. It also aligns Pi Network with modern app standards, offering greater control and ease of use for long-term holders.

By making the recovery process more efficient, Pi network might be able to keep and attract more users. The feature, however, does not directly influence price in the short term. To reverse the trend, the wider market will require utility-led adoption or access to an exchange.

Market Sentiment Hinges on Breakout and Support Recovery

Although Pi crypto price movement is bearish, some analysts believe that a breakout could still be achieved if the main resistance levels could be reclaimed. PiNewsZone posted a chart highlighting a potential breakout if the price surpasses the recent wick highs near $1.95.

The chart reflected what the PI crypto might achieve once the asset gains strong liquidity.

Currently, such highs have been attained on low-volume trading platforms. The widely followed PiScan still tracks the token under $0.45.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.