Pi Network (PI) is under increased scrutiny as 138.21 million PI tokens, valued at $37 million, are due to be unlocked in October.
The altcoin has been trading sideways since September 23, now facing the possibility of revisiting its all-time low if demand continues to wane.
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PI Under Pressure as Sentiment Turns Bearish
October’s unlock coincides with a dip in investor confidence. On-chain analysis indicates PI’s weighted sentiment dropped below zero on September 24 and has stayed there since. According to Santiment, it currently sits at -0.63.
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Weighted sentiment merges the volume of social mentions about an asset with the ratio of positive to negative comments, helping to gauge whether discussions around the token are bullish or bearish.
A weighted sentiment above zero indicates a preponderance of positive commentary, suggesting favorable public perception.
With PI’s weighted sentiment consistently below zero for more than a week, it reflects worsening sentiment among market players and may result in further price declines.
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Moreover, findings from PI’s Super Trend Indicator corroborate this bearish outlook, acting as dynamic resistance above PI’s price at $0.3279.
This indicator aids traders in identifying market direction by placing a line above or below the price chart based on the asset’s volatility.
As is the case with PI, trading below the Super Trend line signals a bearish market characterized by dominant selling pressure, leaving PI exposed to further declines.
Will Bears Drive It to $0.18 or Bulls Force a Rebound?
The current lack of demand for PI, coupled with the impending supply increase, suggests that the altcoin may either stagnate in sideways consolidation or experience a sharp downturn. Should demand diminish further, PI could dip below its immediate support level at $0.2573, heading toward its all-time low of $0.1842.
However, if traders step in to absorb the incoming supply, PI may stabilize and attempt to recover, potentially breaking above $0.2917 and targeting $0.3987.
