3 Major Signs Point to Mounting Selling Pressure on Pi Network (PI)

Pi Network (PI) is facing severe headwinds in November as on-chain data confirms a dangerous convergence of increased supply and declining demand. Despite a drop of more than 90% from its peak, three major factors indicate that market forces are heavily skewed toward continued downward pressure, risking new price lows.

I. Three Critical Indicators of Bearish Pressure

Analysis of the token’s supply dynamics and market activity points to weak market confidence and intense structural selling pressure:

1. Massive Token Unlocks Increase Supply:Data: Piscan data shows that nearly 5 million PI are unlocked daily, with a total of 145 million Pi expected to be unlocked this month. This unlock volume is set to increase further, with over 173 million Pi expected in December.Consequence: This steady, massive injection of new supply creates a significant obstacle to any price recovery, as the market must absorb constant inflationary pressure.2. Exchange Balances Hit All-Time Highs:Data: The amount of Pi held on centralized exchanges (CEXs) climbed to a record high of nearly 426 million Pi in mid-November, up from 423 million at the start of the month.Consequence: This growth in exchange reserves indicates that tokens are being moved to trading platforms, signaling heightened readiness to sell and reinforcing the expectation of continuous downward pressure on the price.3. Weak Trading Volume Reflects Fading Activity:Data: The 24-hour spot trading volume for Pi hovers around a weak $30 million, following a monthly trading volume of just $1.2 billion in October. Price and volume have declined in parallel.Consequence: Low trading volume translates to weak liquidity. This lack of market activity, combined with rising supply and high exchange balances, intensifies the token’s bearish trend and makes it more vulnerable to large price movements downward.

II. Community Sentiment vs. Market Reality

While the technical and on-chain metrics point bearishly, Pi supporters remain optimistic: Pioneer Optimism: Supporters argue that the actual circulating supply is only around 3 billion Pi, and the Core Team has not been aggressively selling. They suggest that the current price range (around $0.20) is controlled by market makers and represents a deep buying opportunity that will eventually rebound.Market Outlook: The market reality, however, is that weak liquidity, constant unlocking, and growing exchange reserves are powerful structural forces that are currently deepening the bearish trend, regardless of long-term community confidence.

⚠️ Important Disclaimer

This analysis is for informational and educational purposes only and is derived from public market data and on-chain metrics. It is not financial advice, nor should it be construed as a recommendation to buy, sell, or hold any cryptocurrency. The cryptocurrency market is highly speculative, volatile, and subject to external factors, including regulatory shifts and macroeconomic conditions. Past performance is not indicative of future results. Readers must conduct their own comprehensive research (DYOR) and consult with a qualified financial advisor before making any investment decisions. The author and publisher bear no responsibility for any financial loss incurred as a result of relying on the information presented herein.