Pi Coin (PI) is currently experiencing significant selling pressure, with a downward trend increasing in the market. After a sharp decline in May and June, the Pi Coin price may face additional challenges in July.
Several factors, including major Token unlocks, could intensify selling pressure, potentially making altcoins vulnerable to further price declines.
Pi Coin, Mass Influx into the Market
Pi Coin is expected to face substantial pressure in July due to the upcoming Token unlock event. According to Pi Scan unlock analysis, over 318 million Pi (PI) tokens, valued at approximately $160 million, will be gradually unlocked over one month. This increased supply could burden the price.
The combination of Token unlocks and a lack of strong demand could further drive Pi Coin into a downward trend. Investors may seek to sell their holdings before new tokens enter the market, which could exert additional downward price pressure. As more tokens are circulated, the existing supply-demand imbalance might make it difficult for Pi Coin to recover in the short term.
Pi Coin's macro momentum was affected by the decline in Chaikin Money Flow (CMF) last week. The CMF indicator, which tracks asset accumulation and distribution, shows a downward trend, indicating increasing selling pressure. Previous inflows provided hope for a potential trend reversal, but subsequent outflows suggest that investors' confidence in Pi Coin is weakening.
Increasing outflows reflect growing investor concerns as more holders exit their positions following poor performance. The current trend suggests that Pi Coin may struggle to regain bullish momentum, especially with the upcoming Token unlock and the market sentiment of continued decline.
PI Price Recovery Target
The price of Pi Coin has fallen 21.8% last week, remaining at $0.49. This support level has helped prevent a larger decline, but it remains vulnerable to further drops. If Pi Coin fails to maintain this level, the next major support line at $0.45 could be under pressure.
Considering the current situation, Pi Coin is likely to enter a correction in July. The all-time low (ATL) for altcoins at $0.40 is 19% below the current price. Significant selling could push the price to this level. If the price fails to maintain above $0.45, Pi Coin may experience additional declines.
To invalidate the bearish outlook, Pi Coin would need a strong momentum shift. Rebounding from $0.49 and breaking through $0.51 would indicate a potential trend reversal. Additionally, converting $0.57 to a support line would be crucial in reversing the current downward trend. This could potentially drive the price higher.
