Pi Network (PI) Reaches a New All-Time High, But the Reality Might Surprise You

Summary

• Approximately 400 million PI tokens are currently stored on exchanges, with significant unlocks expected soon, leading to worries about heightened sell pressure and potential price drops.
• Following a considerable surge fueled by speculation and anticipation, PI’s value decreased by over 50% after the announcement of a $100 million initiative, exemplifying the typical pattern of buying on rumors and selling on news.

Recent Developments in PI

Earlier today, an X user known as MOON JEFF, who frequently discusses updates related to the Pi Network, indicated that PI tokens on exchanges have peaked at nearly 400 million.

OKX currently tops the list with over 117 million tokens, followed by Bitget with close to 107.7 million.

MOON JEFF mentioned that the total could increase after unlocks slated for the next day, revealing that over 7 million tokens will be made available shortly and that the total unlock over the next month is nearly 270 million PI. The most significant release is anticipated on May 28, when more than 15 million tokens will be accessible.

These developments point to a potentially bearish outlook for the token’s price in the short term. The increase in tokens on exchanges could imply that holders are gearing up to sell, and the substantial unlock events are likely to boost selling pressure as investors may seize the chance to liquidate their long-held assets.

Market Analysis

The PI token experienced significant gains between May 8 and May 12, sparked by stimulating predictions about an upcoming announcement from the Pi Network team. Speculation suggested this announcement could involve a long-anticipated listing on Binance. This excitement contributed to a dramatic price increase, pushing the value up nearly 200% to over $1.70, marking a new two-month peak.

On May 14, the project revealed its $100 million initiative aimed at funding startups and businesses that would enhance the utility and real-world adoption of PI.

However, the announcement triggered a sharp decline in the token’s value shortly before and after it was made. PI continued to fall, hitting a local low of about $0.65 in the subsequent days, illustrating the classic cycle of buying on speculation and selling on confirmation.

Recently, PI has managed to recover some of its losses and is trading at approximately $0.72; however, this still signifies a notable weekly decline of 52% according to available data.