7,000,000 PI in Just 1 Day: Is Pi Network’s Price Poised for a Further Collapse?

TL;DR

• PI is down 90% from its all-time high of around $3 registered in February, and some factors suggest the crash might intensify in the short term.
• Onramp Money recently embraced the asset, but community members believe support from Binance or Coinbase is more likely to provide the spark for a sustained rebound.

The Worst Isn’t Over Yet?

The native token of Pi Network experienced a notable resurgence towards the end of last month, with its price reaching nearly $0.40. The pump occurred shortly after the team behind the project introduced a Linux Node version, thus expanding its OS capabilities beyond Windows and Mac. 

However, the green days were once again replaced by a substantial correction, with PI tumbling to $0.33 and later slightly recovering to its current value of $0.34 (according to CoinGecko’s data).

Moreover, several red flags suggest the pain for the bulls may be far from over. The supply of PI tokens on exchanges has reached a record high of nearly 428 million, with approximately 7.1 million coins flowing into these platforms in the past 24 hours. Almost 50% of the entire stash is stored on Gate.io, while Bitget comes in second with roughly 143.5 million.

Shifting from self-custody methods to exchanges is typically interpreted as a bearish sign, as it suggests that investors may be preparing to sell. In general, the influx of coins on the open market, combined with non-increasing demand, leads to a price downtrend. 

The upcoming token unlocks are another factor worth considering. Over 12 million PI will be released today (September 2), thus marking one of the record days for the next month when a total of 161.3 million coins will be freed up.

The development doesn’t guarantee a mass sell-off but will allow investors to offload assets they have been waiting for a long time. 

Is There Light at the End of the Tunnel?

One element that may put the brakes on PI’s major downfall in the past several months is increased support from companies. Just a few hours ago, Onramp Money, a fiat-to-crypto gateway, embraced the asset on its platform. 

However, the disclosure did not provide a price boost for PI. Industry participants believe that backing from a major crypto exchange is more likely to ignite a rally. Binance already asked its users whether they want to see PI available for trading, but despite the overwhelming support, it remains silent on the matter.

There are also rumors that Coinbase may offer services for the token, though nothing has been officially confirmed yet.