PI’s price revisited its all-time low of $0.40 last Friday. Although it rebounded slightly to close the day at $0.58, the token resumed its downtrend over the weekend and into the new week.
With buying pressure weakening and token unlocks on the rise, how low can the PI token price go in Q2?
Heavy Token Unlock and Weak Institutional Interest Threaten PI Recovery
PI’s growing unlock schedule poses a major threat to any hopes of a significant price rebound in the near term. Over the next 30 days alone, 337 million PI tokens valued at approximately $185 million will be released into circulation, per PiScan.
This increase in supply continues to weigh heavily on market sentiment and adds downward pressure to the token’s already fragile price action.
Token unlocking refers to the gradual release of previously locked or vested tokens into the market, often following a predefined schedule. These unlocks introduce a consistent stream of potential sell pressure for PI, which still lacks exchange listings on major platforms like Binance and Coinbase.
Furthermore, the coin’s plunging Relative Strength Index (RSI) indicates falling demand, hinting at further price drops. At press time, this stands at 33.54, reflecting the reduced buying interest.
The RSI indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100. Values above 70 suggest that the asset is overbought and due for a price decline, while values under 30 indicate that the asset is oversold and may witness a rebound.
At 33.54 and falling, PI RSI signals weakening momentum, reinforcing the bearish outlook.
Moreover, the persistent dip in PI’s Smart Money Index (SMI) suggests that institutional capital is increasingly withdrawing from the asset. As of this writing, it stands at 1.28, plummeting by 10% over the past 30 days.
An asset’s SMI tracks the activity of experienced or institutional investors by analyzing market behavior during the first and last hours of trading.
When the indicator rises, it indicates increased buying activity by these investors, signaling growing confidence in the asset. Conversely, when it drops, it suggests selling activity or reduced confidence from these investors, pointing to expectations of price declines.
PI Faces Mounting Pressure
Since May 21, PI’s price has consistently traded below a descending trendline, a pattern that signals sustained bearish momentum. This setup emerges when sellers dominate the market, forming lower highs over time and suppressing any attempts at a meaningful rebound.
PI’s continued presence beneath this trendline reflects continued investor hesitation and weakening demand. If this continues, its price could revisit its all-time low of $0.40 and fall to new lows.
On the other hand, a resurgence in demand could drive the PI token price toward $0.65.
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