Pi Network nosedives 12% post-rebound – Identifying the reasons

Pi Network [PI] reached a new all-time low near $0.07060 on the 14th of July.

The altcoin rebounded over 16% the following day, but the recovery quickly faded. The token then fell by around 12% within 24 hours.

Trading volume also declined roughly 13% to $23 million. Token unlocks and profit-taking may have contributed to the renewed weakness.

Why did PI fall again?

Data from PiScan showed that massive token releases are set to be unlocked daily, with the highest release this week occurring on the 16th of July. That is, more than 7 million PI, worth well over $527K, would be hitting the market, adding to the 5.181 million tokens unlocked the previous day.

Over the next five days, well over 24 million PI would be released, resulting in immense selling pressure. Each day, an average of 4.25 million PI are unlocked, with a value exceeding $315K.

Profit-taking may have added further pressure after PI rebounded from its record low. The recovery briefly carried PI toward $0.085.

That move placed dip buyers in profit, potentially encouraging some traders to exit. PiScan also recorded small swaps into Bitcoin [BTC], XRP, and Tether [$USDT].

Still, the available data did not establish whether those swaps materially affected PI’s market price.

Can Protocol v25 support PI?

PI’s technical structure remained bearish after the token broke below its three-week trading range.

The range held between the 5th and 29th of June. Afterward, PI formed several lower highs on the four-hour chart. The latest rejection pushed PI back toward its all-time low. It traded near $0.07312 when the chart was captured.

Additionally, the Cumulative Volume Delta [CVD] reflected strong selling on OKX. The chart recorded approximately 18.65 million PI in net selling.

The Directional Movement Index [DMI] supported this bearish structure. The Negative Directional Indicator stood at 22, above the Positive Directional Indicator at 14.

This setup suggested sellers retained control, leaving PI vulnerable to another lower high.

However, Pi Network scheduled its Protocol v25 upgrade for the 22nd of July. The update targeted network stability, reliability, and privacy-preserving capabilities.

The upgrade could improve sentiment, but its effect on demand remains uncertain. Continued unlocks and broader market weakness may limit any recovery.

Final Summary

• Pi Network declines 12%+ in 24 hours amid massive token unlocks and profit-taking.
• PI continues to make new lower highs, but the Protocol v25 upgrade could halt that trend.