Pi Coin faces renewed selling pressure as its price has dropped nearly 20 percent in just two days. The token now trades around $0.61, reversing most gains made during its short-lived bounce from a record low of $0.38.
Pi Coin’s market value has dropped because investors worry about the excessive boost in its total supply. Dr. Altcoin predicts an additional 35 to 50 percent value decrease for Pi Coin unless current dynamics alter.
More than 100 million Pi tokens will become available within this current month. Privacy Coin is expected to unlock 1.5 billion new tokens before the year ends.
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Expert analysts observe that supply growth exceeds demand levels at present. The absence of Pi Coin from major trading platforms Binance and Coinbase prevents investors from buying or selling, thus restricting trading activity.
Dr. Altcoin predicts the market will drive Pi Coin prices down to $0.30 during the following months because of this supply-demand imbalance. Dr. Altcoin demands that Pi developers enact urgent measures to limit the circulation of tokens.
The current price chart shows Pi Coin forming a falling wedge, a pattern that often signals continued decline. Last week’s failure to move past the $0.78 resistance level has triggered increased bearish momentum.
Source: Tradingview
Surging Supply Fuels Fear of Major Price Breakdown
Analysts warn that the massive token unlocks are weighing heavily on market sentiment. With so many tokens flooding the market, the price has little room to recover unless supply is restricted.
Numerous subject matter experts believe the Pi Core Team should use market stabilization by burning some of its token supply. Available reports indicate that the foundation holds more than 70 billion Pi coins, which establishes its ability to convert them as necessary.
Experts suggest that transaction fees generated in the Pi ecosystem be used as a tool to decrease supply quantity. Multiple blockchain operations presently employ this technique to limit inflation while defending value.
The cryptocurrency market indicator signals remain negative because the coin price continues declining as support thresholds are established. The market price will drop to $0.402 or lower if the current trend continues to fall.
Conclusion
Pi Coin is under growing pressure as an oversupply of tokens continues to hit the market. With expert warnings of a 50 percent drop, urgent action from the Pi Core Team may be the only way to avoid a more resounding crash.
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