Pi Network price faces a major hurdle in its attempt to recover in May amid the looming unlocks of $139M PI tokens. The unlocks will occur throughout this month, and they may weigh on this altcoin and hinder its breakout from bearish trends.
At press time, Pi Coin trades at $0.59 with a 3% decline in 24 hours. Trading volumes have plunged by 50%, suggesting that the altcoin is stuck in a bearish trend due to a lack of market interest.
Pi Network Price Forecast Ahead of $139M Unlocks in May
The Pi Network price faces bearish pressure as data from PiScan shows that 234 million PI tokens valued at approximately $139M will be unlocked in May. Similar unlocks triggered a massive surge in sell-side pressure last month, and if history rhymes, this trend may repeat and exert downward pressure.
Popular analyst Dr. Altcoin opined that despite these unlocks and speculation that Pi Coin is dying, the token would likely retain its strength as the developer team has been countering the unlocked PI entering exchanges. He noted,
“The PCT seems to have solid plans in place and has been absorbing as much Pi from CEXs as possible — helping to maintain the price above $0.50.”
Nevertheless, the PI token unlocks are not the only challenge facing the Pi Network price. The mining rate has surged by a slight 2% in May, meaning that more PI tokens are entering the circulating supply, which will also cause inflationary pressure and downward price movement.
Given the above headwinds that mainly point towards a surge in the supply, and the impact that this will have on the PI, it is clear that the Pi Network price prediction is bearish, and it may enter a downtrend.
PI Technical Analysis as Bearish Momentum Strengthens
The Pi Coin 2-hour price chart shows that the bearish momentum around this altcoin is growing strong, and the RSI clearly shows this. This indicator has been making a series of lower lows and has plummeted to 46, an indication that the downtrend will likely continue.
Amid the downward pressure, the first support level to watch is the 23.6% Fibonacci level of $0.58, and if it fails to hold this level, it may trigger the next bearish leg to $0.56. The Bollinger band indicators are also tightening, an indication that a breakout is looming. If such a breakout occurs, traders should watch out for an upward trend to the upper band of $0.62.
Considering the impact of the looming token unlocks and the bearish structure visible on the 2-hour chart, it is clear that the Pi Network price forecast is bearish, and traders should anticipate a downside movement. This bearish thesis will be invalid if PI can overcome the resistance level at $0.62.
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