Pi Network, ranked as the 11th largest crypto by market cap, experienced a 10% price drop, prompting several questions among investors. The reasons behind this volatility may be linked to several factors.
Massive Outflows Raise Concerns
The recent drop in Pi Coin’s price is linked to a global crypto market correction. However, large outflows from the Pi Core Team wallet added panic among market participants. On March 7, nearly 90 million Pi tokens were moved out of the wallet, followed by another 36.4 million tokens the next day.
Upcoming Token Unlocks
Looking ahead, the Pi Network plans to unlock a significant number of tokens over the next month. The largest unlocks are scheduled for March 17 and March 21, with over 23 million Pi tokens set to enter the market on each of these days. In total, around 282 million Pi tokens, valued at approximately $390.93 million, will be unlocked in the next 30 days.
Key Resistance Levels
However, some technical indicators suggest a potential recovery. Currently, Pi Coin is hovering around $1.4, and analyst Rose highlights that the coin is consolidating around a key Fibonacci level. A breakout above $2 might indicate a bullish trend, with next resistance levels at $2-$2.60. A strong buying momentum will be essential to push the price to $3 and beyond.
Pi Coin's current situation suggests volatility and the need for close market monitoring. Investors should weigh potential risks against possible recovery signals to make informed decisions.
