3 Signs Pointing to Mounting Selling Pressure on Pi Network in November
Pi Network (PI) faces a bearish price outlook in November, dropping over 90% from its peak. Key factors include a significant increase in daily token unlocking (up to 4.85 million PI daily and 173 million PI in December) and rising exchange balances (423 million to 426 million PI held on exchanges, an all-time high). Weak trading volume, at $30 million daily and declining monthly to $1.2 billion, exacerbates concerns. Despite these challenges, Pi supporters remain optimistic, citing limited core team selling and a possibility of price rebound after selling pressure is absorbed.
Bearish Outlook for Pi Network in November
Trading data for Pi Network (PI) suggests a bearish outlook for November. Pi's price has already dropped more than 90% from its peak, and market forces might continue to drive it lower. This raises the questions: What are the warning signs? and How do Pi’s loyal supporters explain them?
Massive Unlocking of Pi Tokens
Piscan data indicates that the daily amount of Pi unlocked has reached 4.85 million PI, with 145 million Pi expected to be unlocked in the next 30 days. Additionally, in December, the number of unlocked tokens is projected to exceed 173 million Pi, marking the highest monthly unlock volume until September 2027.
This consistent and increasing unlocking pressure is thought to hamper any price recovery, as it floods the market with supply, likely keeping prices suppressed.
Increasing Exchange Balances Signal More Selling Pressure
The amount of Pi held on exchanges has continued to grow in November. According to Pi Network’s early-month report, exchange reserves rose from 423 million Pi to nearly 426 million Pi by mid-November — an all-time high.
Such a rise in exchange reserves signifies that more tokens are ready for trading or sale, contributing to increased selling pressure on the market, as seen in the chart illustrating Pi reserves across exchanges.
Weak Trading Volume Highlights Low Market Activity
Spot trading volume for Pi has shown limited improvement. The 24-hour trading volume is approximately $30 million, while data from CoinMarketCap indicates that Pi’s monthly trading volume fell to a mere $1.2 billion last month.
This combination of weak liquidity, consistent token unlocking, and influx of Pi to exchanges is expected to deepen the downward momentum of Pi's price.
Optimism Among Pi Supporters
Despite the overwhelming bearish signals, there remains confidence among Pi supporters. An account named Dao World, identifying as a Pioneer, argued that Pi’s maximum supply is large, but its actual circulating supply is only around 3 billion. Additionally, the Pi Core Team has not engaged in aggressive selling.
Dao World further suggested that a few market makers (MM) on select exchanges mostly control Pi’s current price, believing that prices might rebound once selling pressure diminishes. Other Pioneers share this optimism, viewing the current $0.20 range as a notable buying opportunity with potential future value.