Pi Network price gets oversold ahead of a big unlock and potential Kraken listing
Pi Network price continued its strong downward trend this week and is nearing its lowest level on record as traders anticipated a big token unlock this week.
Summary
- Pi Network price continued its strong downward trend last week.
- The network will unlock 82 million tokens in the next seven days.
- A potential catalyst for the coin is Kraken listing.
Pi Coin (PI) token was trading at $0.1450 on Sunday, a few points above the all-time low of $0.1305. It has dropped by over 90% from its all-time high, erasing billions of dollars in value.
Pi token may come under pressure this week as the network unlocks over 82 million coins in the next seven days. At the current price, these coins are valued at over $11 million. These coins are part of the 206 million tokens that come online this month.
Token unlocks are risky for a cryptocurrency because they boost the circulating supply. Soaring supply at a time when demand is not rising will always put pressure on the price.
Pi Network’s supply will also jump in March when the team will issue the validator rewards. In a recent note, they said that they had completed the design and were currently testing it, with the implementation happening in March.
While many validators will hold their tokens, some will dump, leading to lower prices over time.
On the positive side, Pi Network has a major catalyst in that it was added on Kraken’s roadmap list. In most cases, this is usually the first stage before the company lists a token. A Kraken listing would be highly bullish for Pi because of its scale as the second-biggest American crypto exchange after Coinbase.
Pi Network price prediction: technical analysis
The daily timeframe chart shows that the value of Pi has remained under pressure in the past few months. It recently crossed the crucial support level at $0.1520, its previous all-time low.
The coin has remained below the 50-day and 100-day Exponential Moving Averages. It also sits below the Supertrend indicator, a highly bearish sign in technical analysis.
On the positive side, the coin has become highly oversold, with the Relative Strength Index remaining below 30. Therefore, the most likely scenario is where it remains in this range this week. A move above the key resistance at $0.1520 will invalidate the bearish outlook and point to more gains.
