Pi Network Faces Critical Support Test as Major Token Unlock Looms

• Pi Network will unlock 318 million tokens in July 2025, representing the largest release until December 2027.

• The cryptocurrency trades at $0.492 but faces strong downward pressure from increased supply hitting the market.

• Technical analysis shows Pi Network remains below key moving averages, and a break below $0.48 could trigger further selling toward $0.38.

Pi Network’s price is crucial as the cryptocurrency trades at $0.492 on July 7, 2025, down significantly from its May highs. The digital asset faces mounting pressure from an upcoming token unlocks that could trigger substantial selling pressure across the market.

Massive Token Unlock Threatens Price Stability

Pi Network confronts its largest token unlock event in July 2025, with over 318 million PI tokens scheduled for release into circulation. This represents the most significant unlock until December 2027, when approximately 432 million tokens will enter the market. The release adds considerable supply pressure to an already bearish market environment.

The network maintains a circulating supply of 7.68 billion tokens against a maximum supply of 100 billion. This means 92.4 billion tokens remain locked, creating long-term dilution concerns for investors. The systematic release schedule includes monthly unlocks over the next three consecutive months, followed by a resumption in December with over 472 million tokens.

Token unlocks typically create downward pressure on cryptocurrency prices by increasing available supply without corresponding demand increases. The substantial volume of Pi Network’s planned releases compounds this effect, particularly given the market conditions and limited trading demand.

Technical Analysis Points to Bearish Breakdown

Pi Network trades around $0.492 USDT, showing consolidation patterns with resistance at $0.518. Technical indicators suggest the cryptocurrency remains vulnerable to further declines, with key support levels under pressure.

Market analysts project potential 8-10% declines if Pi fails to hold above current levels, with the $0.45 support zone representing a critical test. A decisive break below $0.48 could accelerate selling pressure toward the $0.38 support zone.

The formation of a double-bottom pattern at $0.40 provides some technical support, but the cryptocurrency remains below short and medium-term moving averages. These levels continue to act as resistance, limiting upward momentum potential.

The Chaikin Money Flow indicator shows increased selling pressure, signaling waning investor confidence. This technical deterioration coincides with the approaching token unlock, creating a challenging environment for price recovery.

Current trading volume is approximately $80-92 million over 24 hours, with the market cap near $3.5 billion. Despite maintaining reasonable liquidity levels, technical weakness and fundamental supply pressure suggest continued volatility ahead.

Pi Network’s price performance reflects broader concerns about token economics and the impact of systematic supply increases on market dynamics. The cryptocurrency faces a critical test of its support levels as the July unlock approaches, with technical indicators suggesting limited upside potential in the near term.