Pi Network’s PI Token: Signs of Reversal After 90% Crash

PI’s current trading price of $0.26 represents a staggering 24% decline on a monthly scale and a catastrophic 90% drop from the $3 peak registered earlier this year. This dramatic underperformance stands in stark contrast to Bitcoin’s record-breaking rally, highlighting PI’s unique challenges within the broader cryptocurrency ecosystem. However, beneath the surface of this bearish price action, several fundamental shifts are occurring that could signal an impending trend reversal.

The most compelling bullish signal emerged from exchange flow data, which revealed that investors transferred over 12 million PI tokens to self-custody wallets within a single 24-hour period. Nearly all of these withdrawals originated from OKX, one of the major cryptocurrency exchanges where PI trades. This mass exodus from exchange wallets to private storage demonstrates growing investor confidence in holding the asset long-term, while simultaneously reducing immediate selling pressure by removing tokens from readily available trading pools.

From a technical analysis perspective, PI’s Relative Strength Index (RSI) has dropped below the critical threshold of 30, indicating the token has entered oversold territory. The RSI measures the speed and magnitude of recent price changes to help traders identify potential trend reversals. Readings at or below 30 typically signal that an asset has been oversold and may be poised for a rally, while readings above 70 warn of potential short-term corrections.

This technical setup suggests that the prolonged selling pressure on PI may have exhausted itself, creating conditions ripe for a potential rebound. The combination of oversold technical indicators with the fundamental shift in token ownership from exchanges to private wallets creates a compelling case for cautious optimism among PI investors who have endured months of declining prices.

Another critical factor supporting potential price stabilization is the significant reduction in upcoming token unlocks. Data from piscan.io indicates that less than 120 million PI will be released into circulation over the next 30 days, representing a substantial decrease compared to previous months. Reduced token unlocks mean less immediate selling pressure from newly available supply, potentially allowing demand to catch up with and exceed the incoming token flow.

Despite these positive developments, analysts remain sharply divided on PI’s future trajectory. X user JAVON MARKS recently projected that PI could surge by triple digits to reach as high as $1.23, representing a massive potential gain from current levels. However, not all voices in the analytical community share this optimism. The analyst known as Korasi Nakamoto has taken a more pessimistic stance, warning that a break below the $0.25 support level could trigger an additional 30% collapse to a new all-time low of $0.18.

This divergence in analyst opinion reflects the uncertainty surrounding PI’s future, with technical indicators and fundamental shifts pointing toward potential recovery while price action remains firmly in bearish territory. The coming weeks will be crucial in determining whether the positive signals materialize into sustained price appreciation or whether PI continues to struggle despite the broader cryptocurrency market’s bullish momentum.