Crisis business-focused circa October 2023
Pi Network (PI) struggles with price pressures as traders digest recent selling against bullish expectations heading into the Protocol 23 launch on May 11. PI was changing hands at close to $0.1782 on May 2, down about 1.4% in the past 24 hours, underlining the lack of strong bullish momentum despite a wider recovery from digital assets this week.
Enthusiasm over the launch of Protocol 22 has seen the token recently rise back up near $0.20. That move was PI’s largest monthly rally, but buyers didn`t manage to keep the breakout. However, sellers were back against the $0.20 resistance zone and sent PI to reverse from there as it moved back towards the $0.17 area.
Such rejection at the $0.20 level is important because it emphasizes how market participants are continue to use rallies as exit opportunities instead of accumulation areas.
Still a Weight on PI, Token Unlock pressure
Continued token unlock pressure is one of the straws causing PI08’s recent weaknesses. As per market data, Pi Network is set to open its 200 million [~$36 million] sell-side liquidity this May. (BanklessTimes)
This is important as token unlocks generally expand the circulating supply, which can put downward pressure on the price if demand does not increase proportionally. That seems to be the way the story went once PI hit about $0.20. Many traders probably seized on the rally to take profits while newly unlocked tokens hit the market.
This phenomenon may shed some light on why PI has failed to gain any speculative groundswell the whole summer (despite quite a few positive developments in its ecosystem). Protocol upgrades create long-term utility, while token unlocks will continue to build a supply overhang in the short-term time frames.
Protocol 23 Might Be the Most Important PI Upgrade Yet
The largest forthcoming catalyst is Protocol 23 on May 11. This upgrade will enable native smart contract capability on the Mainnet, and node operators must migrate by May 15, according to the Pi Network Core Team. (KuCoin)
One of the most important upgrades in Pi Network is that it helps lay the foundation for utility in the ecosystem instead of just basic transfers. This will enable Pi to enable decentralized applications, smart contracts, on-chain services, and broader real-world blockchain use cases.
Since this leads to the potential for tools enabling decentralized finance, app development, and more robust utility demand, developers see this as a major long-term milestone. However, execution matters. The Core Team has already cautioned that this upgrade might be a more tussle-prone tenable component than past releases, particularly as a result of node administrators with their own instruments or worse network associations.
That means a successful migration and subsequently stable network will be essential for market confidence post-launch.
Market sentiment is improving, but the pie lags
However, the wider crypto market has been showing various signs of recovery, which could potentially help in stabilizing PI. Total crypto market capitalization increased by approximately 0.93% in the past 24 hours, while Bitcoin grew stronger (+1%) as ETF inflows improved. Ethereum and even XRP both added a handful of dollars, supporting more constructive risk across digital assets.
Given that PI has not really replicated that momentum, it shows traders are still hesitant and would like further confirmation from either Protocol 23 or new exchange-oriented liquidity
Rumours of further exchange listings have also kept sentiment high. After a Kraken listing, PI’s exposure expanded, and traders now wait for more listings to widen investor access and liquidity. The community discussion shows that exchange access still ranks among the most anticipated catalysts for PI holders. (YouTube)
Pi Network Price Prediction: Key Levels
Technically, PI continues to be on a range-bound, neutral momentum. The Relative Strength Index is neutral as buyers and sellers hardly exert control over price (CoinLore)
The most important upside, of course, will be at $0.19 that’s still intact for you. In case PI can recover that area on high volume, the bulls might try to retest the $0.20 resistance level. In the short term, a break over $0.20 could see us on our way toward $0.21 and maybe then to $0.22$. (KuCoin)
Conversely, insufficient momentum may guarantee PI bulks in $0.1750 → $0.19, and if sellers take charge again with 0.1650 as the next key support level. As it currently stands, PI is still in a watch-and-wait phase, with Protocol 23 likely to be the decider on whether we break higher or face yet another rejection.
Conclusion
This means Pi Network is still relatively weak at the short-term levels, with price action remaining below interim resistance at $0.20 and token unlock pressure fending off any upside in value in the meantime.
While PI does have strong sentiment in the crypto market rally and speculation about future exchange listings, buyers have not shown enough strength to maintain its breakout.
The most critical near-term catalyst is the launch of Protocol 23 on May 11, which will allow native smart contracts and thus significantly increase the long-term utility and growth potential of the Pi ecosystem.
If the upgrade goes well and PI returns to $0.19 with volume, bullish momentum could return. Much before next stronger confirmation, PI is likely to stay in range.
