On August 3, Pi Coin (PI) dropped to a new low of $0.35 before slightly recovering to around $0.36. This marks a 44% decline over the past two months, erasing most of its post-launch gains and significantly underperforming the broader altcoin market. The break below the $0.38 support level has worried technical analysts, with some speculating a further drop to $0.21. The Relative Strength Index (RSI) has fallen to 12.15, its lowest point since March, indicating the token is deeply oversold, though sellers remain in control.
The primary cause of the downward pressure is Pi’s aggressive token release schedule. With only 7.7% of the 100 billion maximum supply currently in circulation, each new token migration from the enclosed network adds to the supply, overwhelming buyer demand. For instance, 160 million PI were unlocked in August alone. This issue is compounded by significant delays in user migration and KYC verification, which have left many users unable to fully participate in the network.
Community frustration has also been growing, particularly concerning the core team’s recent voluntary lockup program. Many users view the program as poorly timed given the token’s 90% price drop and are critical of the leadership’s communication.
While there have been some positive developments, such as the integration of Pi Wallet with Onramper and various dApp creation tools, these have not been enough to counteract the selling pressure. Although some “whale” activity suggests strategic accumulation, overall market sentiment remains cautious. The future of Pi Coin hinges on its ability to accelerate user migration and introduce high-utility applications that can generate genuine demand and absorb its inflationary supply.
August 2025, Cryptoniteuae
