Required containers
- A slight uptrend and weak technical indicators could force the PI to the necessary support at $0.1184.
- About 16 million PI tokens are due to be activated on Thursday, with another 14.8 million eligible for the mainnet migration on Friday, which could increase the selling pressure.
Pi Network (PI) traded slightly lower on Thursday after suffering three consecutive losing days earlier in the week. The index is still locked in a bullish trend that has continued since late April.
The recovery faces a major challenge ahead as millions of new PI tokens are expected to enter the bloodstream, which could increase selling pressure and reduce momentum.
A large opening of tokens can increase the power of electricity
According to PiScan data, about 16 million PI tokens are expected to be activated on Thursday.
Another 14.8 million PI tokens are expected to be eligible for Friday’s mainnet migration, raising concerns about power surges.
Newly activated tokens can be transferred to central exchanges, increasing the opportunity to increase sales.
In the past, major token unlock events often resulted in short-term declines as investors gained access to previously restricted assets.
Online transactions also show significant withdrawals among major wallets. PiScan data shows that three of the five largest transactions recorded in the last 24 hours involved the movement of approximately 255,000 PI tokens.
The technical aspects of PI remain stable
At the time of writing, PI is trading above $0.1250, but the broader technical picture remains weak.
The indicator continues to trade below the key moving averages (50 days, 100 days, and 200 days) on the four-hour chart.
The combination of these indicators above the current price shows that sellers continue to dominate the market.
Strong technical indicators provide little evidence of a strong recovery. The RSI is hovering around 43, indicating buying weakness and a lack of momentum.
The Moving Average Convergence Divergence (MACD) and the signal line remain below zero, indicating that conditions are continuing despite the recent recovery.
Together, these indicators suggest that short-term meetings may face difficulties in moving forward.
If the rally resumes, PI will need to overcome the resistance of $0.1299 to reach the higher areas at $0.1360 (EMA 100) and $0.1400.
However, if the change continues, the bulls will need to defend the initial levels at $0.1184 and $0.1000.
A break below $0.1184 would cause PI to continue downward and could lead to a move towards $0.1000.
While Pi Network has managed to stabilize after several days of losses, the combination of technical weakness and key fronts continues to favor the bears.
Unless demand is strong enough to pick up the upside, the downside risk could be a short-term useful rally, while the $0.1184 support level established recently will remain an important line to watch in the coming days.
