Pi Price Risks Fresh Lows as 138 Million Tokens Unlock in October

Pi Network (PI) faces renewed pressure as 138.21 million PI tokens, valued at $37 million, are set to be unlocked in October. 

The altcoin has been trading sideways since September 23 and now risks retesting its all-time low if demand continues to falter.

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PI Under Pressure as Sentiment Turns Bearish

October’s unlock comes at a time when investor confidence is already shaky. On-chain data shows PI’s weighted sentiment slipped below zero on September 24 and has remained under that line ever since. According to Santiment, this is at -0.63 at the time of writing. 

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Weighted sentiment combines the volume of social mentions of an asset with the ratio of positive to negative commentary. It helps measure whether online discussions around a token are leaning more bullish or bearish.

When weighted sentiment is above zero, it indicates more positive comments and discussions about the cryptocurrency than negative ones, suggesting a favorable public perception.

On the other hand, a negative reading indicates more criticism than support, reflecting bearish sentiment. 

With PI’s weighted sentiment holding firmly below zero for over a week, it highlights that sentiment among market participants has worsened and may trigger further price dips.

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Further, readings from the PI’s Super Trend Indicator support this bearish outlook. It continues to act as a dynamic resistance above PI’s price at $0.3279.

This indicator helps traders identify the market’s direction by placing a line above or below the price chart based on the asset’s volatility. 

As with PI, when an asset’s price trades below the Super Trend line, it signals a bearish market where selling pressure is dominant. This leaves PI vulnerable to more declines. 

Will Bears Drive It to $0.18 or Bulls Force a Rebound?

The lack of demand for PI and the upcoming supply influx mean the altcoin could either remain trapped in sideways consolidation or face a sharp breakdown. If demand weakens further, PI could break below its immediate support at $0.2573 and plunge toward its all-time low at $0.1842.

However, if traders step in to absorb the incoming supply, PI could stabilize and attempt a rebound. It could break above $0.2917 and push toward $0.3987 in that case.