Pi Network Price Could Miss Ongoing Crypto Bull Run
Pi Network price could miss the ongoing crypto bull run as concerns around token sales by the Pi Foundation, centralization, and token unlocks persist.
Current Trading Status
Pi Coin (PI) was trading at 0.8100 dollars on Thursday, slightly below this week’s high of 0.8610 dollars. The token remains 51 percent below this month’s peak and 73 percent lower than its all-time high.
Market Performance
Pi Network price pulled back even as Bitcoin (BTC) soared to a record high and most altcoins jumped by double digits. This performance is a continuation of what happened last week after the launch of the Pi Network Ventures.
Pi Network Ventures Initiative
Pi Network Ventures is a new initiative that plans to invest 100 million dollars into startups building on Pi technology to help expand its ecosystem. While this is a promising development, the Pi Core Team has not addressed major issues affecting the project, such as centralization, ongoing token unlocks, and the lack of listings on major exchanges.
Transparency Concerns
One of the primary concerns is the lack of transparency surrounding Pi token sales by the Pi Foundation. According to an X post by blockchain analyst Dr. Altcoin, the foundation reportedly created 22,000 wallets that hold more than 92 billion tokens.
He identified a recent transfer of 1.4 million tokens from a four-year-old wallet to a newly created one. These tokens were later sold on Gate.io, one of the few exchanges listing Pi Coin. Several similar transactions have reportedly been identified using the PiScan platform.
Daily Token Unlocks
The other concern is the daily token unlocks that are increasing supply during a period of muted demand. Data shows 110 million coins are coming online this month, 254 million in June, and 233 million in July. The network will unlock 1.507 billion coins in the next 12 months.
Centralization Risks
Centralization remains a key concern. Foundation-controlled wallets reportedly hold more than 90 billion tokens. This concentration of holdings raises risks for the network, particularly if security vulnerabilities are discovered.
Technical Analysis of Pi Network Price
The four-hour chart shows that Pi Coin has declined sharply from 1.6692 dollars last week to 0.8180 dollars.
The price has formed a bearish flag pattern, a continuation setup that typically consists of a sharp decline (flagpole) followed by a period of consolidation within parallel trendlines (the flag). The flagpole began on May 12 and ended on May 17.
Pi Coin is now forming the flag section of the pattern. If the structure plays out, a bearish breakdown may follow, with the next support level to watch at 0.6585 dollars, the May 17 low. A break below that level could trigger further downside toward 0.5545 dollars, the lowest point reached on April 29.