Pi Network Price Stability Amid Tokenomics Concerns

The Pi Network price is stable at $0.60 following an 80% drop since its peak. Despite a recent bullish breakout, concerns over tokenomics persist, with 1.5 billion tokens due to unlock in the next year. The network’s structure raises fears of potential market collapse if the core team’s holdings are liquidated. Ana;ysts highlight the risks associated with token concentration among the core team and foundation.

The Pi Network has experienced a lack of price movement recently, maintaining a steady value of $0.60 after witnessing an 80% decrease since its peak post-mainnet launch. This article discusses the current price dynamics and tokenomics concerns surrounding Pi coin, designating it as the chart of the week.

Historically, Pi coin achieved a peak price of $3 shortly after its February mainnet launch. However, it has since entered a bear market, with prices dropping to the current level of $0.6250. A falling wedge pattern indicative of a potential bullish breakout is forming, comprised of two converging trendlines, suggesting possible upward price movement.

Recently, Pi coin made a notable breakout, climbing to $0.7860, a 100% increase from its recent low. However, the price faced resistance at this level and retracted back to $0.6250. A small head and shoulders pattern indicates that further downward movement may occur, with sellers potentially targeting this month’s low of $0.40.

An alternative bullish scenario indicates a double-bottom pattern at $0.6040, which typically signifies a bullish reversal. If this pattern holds, there is potential for the price to advance toward the psychological resistance level of $1.

The primary concern influencing Pi Network’s market performance is tokenomics. Significant token unlocks are anticipated, with 1.5 billion tokens slated to be released in the forthcoming year, translating to approximately 4 million tokens daily. While developers claim that future releases will decrease over time to mitigate dilution fears, the high concentration of tokens held by the core team poses risks of a potential collapse if these tokens are liquidated.

The Pi Network comprises millions of pioneers collectively assigned 65 billion tokens, while allocations to the core team consist of 20 billion tokens and 10 billion tokens for foundation reserves. Notably, analysts suggest a close alignment between the core team and foundation, indicating they oversee the 5% of tokens set aside for liquidity purposes, amplifying concerns regarding their influence over token market dynamics.