Pi Network Faces Downside Pressure Ahead of Major Token Unlock

Pi Network (PI) continues to struggle amid mounting bearish momentum as it trades below the $0.42 mark, retreating from earlier highs of $0.4364. The downward trend, which began in mid-May, is intensifying ahead of a significant token unlock scheduled for August. Investors remain cautious amid growing supply concerns and delays in the anticipated integration of the Pi Network on-ramp service.

August Token Unlock Could Trigger Increased Selling

Data from PiScan reveals that approximately 161.6 million PI tokens will become unlocked in August, expanding the circulating supply by roughly 2.1%. This represents the largest monthly unlock until December, when an even larger tranche of 170.5 million tokens is set for release.

Historically, token unlock events tend to amplify selling pressure as investors capitalize on profit-taking opportunities. Given this precedent, market participants should moderate bullish expectations, as the increased supply could weigh heavily on price action.

Onramp Money Integration Faces Delays

Adding to the bearish outlook, Onramp Money announced on Tuesday that its official integration of PI tokens remains incomplete. This service aims to enable users to purchase PI directly with fiat currency. While the launch was initially anticipated for early August, it now appears likely to be delayed until mid to late August.

In the meantime, the Pi Network app is displaying alternative on-ramping options through third-party providers Banxa and TransFi. However, the network itself has yet to make any official announcements regarding these alternatives. The ongoing uncertainty around the direct purchase option may dampen investor enthusiasm.

Technical Indicators Signal Risk of Further Decline

Technically, Pi Network is approaching a critical support level at $0.40, near its all-time low last tested in mid-June. The token has already fallen more than 17% so far in July, reflecting persistent bearish sentiment.

The Relative Strength Index (RSI) currently stands at 35 on the daily chart and continues to trend downward toward oversold territory. This suggests a weakening of buying pressure and room for further price declines. Additionally, the Moving Average Convergence Divergence (MACD) indicator is approaching a potential bearish crossover, which would be confirmed by an increase in negative histogram bars—a classic sell signal.

Should PI decisively break below the $0.40 support, the next key levels to watch are the S1 pivot at approximately $0.3837 and the S2 pivot near $0.2585, which could act as targets for an extended downtrend.