The Pi Network has been on a steep decline, with its price crashing for four straight months and reaching a new record low in September. The token fell to around $0.186, marking a staggering 95% drop from its all-time high earlier this year. Its market cap has also shrunk to just $2.1 billion, compared to nearly $20 billion in February.
Why Pi Network Is Struggling
One of the main reasons Pi has struggled since launching its mainnet is its high inflationary structure. The project has a maximum supply of 100 billion tokens, but only 8.2 billion are currently in circulation. That leaves over 91 billion tokens still to be mined or unlocked a major overhang on price.
October will add even more pressure, as Pi Network is set to unlock 138 million tokens worth over $35 million. November will see another 103 million tokens unlocked, followed by 171 million in December, according to PiScan.
Historically, token unlocks tend to be bearish events because they increase supply at a time when demand may not keep up often pushing prices lower.
Ecosystem Challenges
Beyond supply pressure, Pi Network has also fallen short of its bigger vision. The project aimed to create an ecosystem where Pi Coin could function as a widely used digital currency. While some decentralized apps exist in the Pi ecosystem, none have gained significant traction or mainstream use.
This lack of real-world adoption has made it difficult for Pi to build sustainable demand for the token, leaving many early supporters disappointed.
A Glimmer of Hope?
Despite the bearish outlook, not all is bleak. On-chain data shows that one whale has recently accumulated millions of Pi tokens. While the identity of this buyer isn’t known, speculation suggests it could be an insider betting on a future catalyst perhaps an exchange listing or a token burn announcement. Such developments could trigger a temporary rebound.
Technical Analysis: Downtrend Still Intact
From a technical standpoint, the eight-hour chart paints a bearish picture. Pi has:
- Broken below the lower line of a descending triangle pattern, a classic bearish signal.
- Stayed well under all its moving averages, confirming ongoing weakness.
Given this setup, analysts believe Pi will likely remain under pressure in October as more tokens hit the market. Still, a short squeeze isn’t entirely out of the question if a major announcement sparks sudden demand.
Bottom Line
Pi Network is facing one of its toughest moments yet. With heavy token unlocks ahead, weak ecosystem adoption, and a persistent downtrend, the token remains vulnerable to more downside. However, whale activity and speculation about potential catalysts could provide brief relief rallies.
