Pi Network (PI) is trading in the green today, July 3, amid a recovery across the broader crypto market. At press time, Pi Network price stood at $0.50 with a modest 1.63% increase in 24 hours. Despite these gains, bearish pressure is still facing this altcoin after it formed a bear flag pattern ahead of more than $10 million worth of unlocks tomorrow.
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Is Pi Network Price Headed for a 30% Crash
Pi Network price has created a bearish flag pattern, which usually confirms that a downtrend is set to continue after a short relief rally. The bear flag’s pole formed in late June when the Pi Coin price fell from $0.66 and recorded a swing low at $0.47.
The 28% fall from the June 25 swing high of $0.66 represents the height of the flag pole. If the price falls below the lower boundary of the ascending channel that currently shows a brief relief rally, it is possible that another 28% decline to $0.351 will happen.
In most cases, bear flag confirmations happen when the buy-side pressure marking the flag’s upward trend is not strong enough, and sellers re-emerge and force the price to drop. However, if the Pi Network price can break the upper boundary of the ascending channel, it will confirm strong buy-side pressure that may invalidate this bearish thesis.
As press time, both the RSI and the CMF indicators were attempting to move above the mean level of 50. If these indicators face rejection at the mean level, PI will likely lose the upward momentum and drop. However, considering that the crypto market is up today, buyers could push these indicators to bullish territory, and Pi Coin may avoid the 30% crash.
PI:USDT: 4-Hour Chart (Source: TradingView)Meanwhile, a recent CoinGape analysis noted that whales are moving Pi Coins from exchanges, which could be a good thing for the price. If these withdrawals continue, PI may avoid crashing to $0.351.
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Upcoming $10M Unlocks Weigh on Pi Coin Price
Concerns are rising about the upcoming unlocks that could have a bearish effect on the Pi Network price performance. In less than 24 hours, more than 19 million PI tokens, valued at nearly $10 million at the current price, are set to be unlocked and flood the market.
Data from PiScan also shows that in the next 30 days, Pi Network will have more than 300 million token unlocks, with an average of 10 million coins added to the supply every day.
PI Token Unlocks (Source: PiScan)These unlocks may be the trigger that forces the Pi Coin price to lose critical support in the bear flag pattern, causing the price to drop below the psychological level of $0.40. Moreover, these unlocks have been the main factor behind a bearish Pi Network price forecast in the past if the demand to absorb these newly released tokens is not present.
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Open Interest Surges Despite Bearish Pressure
Despite the bearish signs that are impacting the performance of Pi Network, the open interest, showing the level of futures trader interest towards the coin, has risen significantly. Data from Coinalyze shows that this metric stands at $23.19 million after a gradual surge.
If the open interest is rising alongside the Pi Coin price, it usually has a bullish effect on the price, by showing that traders are opening long bets on the coin. However, this rise could also be bearish if the price faces weakness and starts dropping, which may cause a long squeeze.
In conclusion, the Pi Network price is currently at a crucial point after it formed a bearish flag right before more than 19 million tokens flood the market through unlocks. This pattern shows that if buyers fail to step in now, Pi Coin may crash by 28% and reach $0.351.
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Frequently Asked Questions (FAQs)
Will the Pi Network price crash after $10M unlocks?
Pi Network price could crash after $10 million unlocks if there is insufficient demand in the market to absorb these coins.
Can Pi Coin fall below $0.40?
Pi Coin could fall below $0.40 after it created a bearish flag pattern that signals a potential 28% crash to $0.351.
Why is Pi Network’s open interest rising despite the dropping price?
Pi Network’s open interest is rising despite the dropping price due to increased speculative activity from futures traders.
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Pi Network Price Flashes Warning Sign Ahead of $10M Unlocks
Pi Network (PI) is trading in the green today, July 3, amid a recovery across the broader crypto market. At press time, Pi Network price stood at $0.50 with a modest 1.63% increase in 24 hours. Despite these gains, bearish pressure is still facing this altcoin after it formed a bear flag pattern ahead of more than $10 million worth of unlocks tomorrow.
Advertisement Advertisement
Is Pi Network Price Headed for a 30% Crash
Pi Network price has created a bearish flag pattern, which usually confirms that a downtrend is set to continue after a short relief rally. The bear flag’s pole formed in late June when the Pi Coin price fell from $0.66 and recorded a swing low at $0.47.
The 28% fall from the June 25 swing high of $0.66 represents the height of the flag pole. If the price falls below the lower boundary of the ascending channel that currently shows a brief relief rally, it is possible that another 28% decline to $0.351 will happen.
In most cases, bear flag confirmations happen when the buy-side pressure marking the flag’s upward trend is not strong enough, and sellers re-emerge and force the price to drop. However, if the Pi Network price can break the upper boundary of the ascending channel, it will confirm strong buy-side pressure that may invalidate this bearish thesis.
As press time, both the RSI and the CMF indicators were attempting to move above the mean level of 50. If these indicators face rejection at the mean level, PI will likely lose the upward momentum and drop. However, considering that the crypto market is up today, buyers could push these indicators to bullish territory, and Pi Coin may avoid the 30% crash.
PI:USDT: 4-Hour Chart (Source: TradingView)Meanwhile, a recent CoinGape analysis noted that whales are moving Pi Coins from exchanges, which could be a good thing for the price. If these withdrawals continue, PI may avoid crashing to $0.351.
Advertisement Advertisement
Upcoming $10M Unlocks Weigh on Pi Coin Price
Concerns are rising about the upcoming unlocks that could have a bearish effect on the Pi Network price performance. In less than 24 hours, more than 19 million PI tokens, valued at nearly $10 million at the current price, are set to be unlocked and flood the market.
Data from PiScan also shows that in the next 30 days, Pi Network will have more than 300 million token unlocks, with an average of 10 million coins added to the supply every day.
PI Token Unlocks (Source: PiScan)These unlocks may be the trigger that forces the Pi Coin price to lose critical support in the bear flag pattern, causing the price to drop below the psychological level of $0.40. Moreover, these unlocks have been the main factor behind a bearish Pi Network price forecast in the past if the demand to absorb these newly released tokens is not present.
Advertisement
Advertisement
Open Interest Surges Despite Bearish Pressure
Despite the bearish signs that are impacting the performance of Pi Network, the open interest, showing the level of futures trader interest towards the coin, has risen significantly. Data from Coinalyze shows that this metric stands at $23.19 million after a gradual surge.
If the open interest is rising alongside the Pi Coin price, it usually has a bullish effect on the price, by showing that traders are opening long bets on the coin. However, this rise could also be bearish if the price faces weakness and starts dropping, which may cause a long squeeze.
In conclusion, the Pi Network price is currently at a crucial point after it formed a bearish flag right before more than 19 million tokens flood the market through unlocks. This pattern shows that if buyers fail to step in now, Pi Coin may crash by 28% and reach $0.351.
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Frequently Asked Questions (FAQs)
Pi Network price could crash after $10 million unlocks if there is insufficient demand in the market to absorb these coins.
Pi Coin could fall below $0.40 after it created a bearish flag pattern that signals a potential 28% crash to $0.351.
Pi Network’s open interest is rising despite the dropping price due to increased speculative activity from futures traders.
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