Pi Network under selling pressure: Mainnet flood and technical weaknesses weigh on the price

Since the start of the week, the Pi-Token (PI) has been showing a mixed situation. With current prices around $0.20, the cryptocurrency is struggling on multiple fronts: the technical chart has significantly lost stability, while at the same time, exchange wallets are facing massive inflows. The reason lies in the accelerated Mainnet migration, which creates structural supply pressure.

Chain analysis reveals growing supply influx

The cause-and-effect chain begins on the blockchain: after successful identity verification (KYC), the migration from the testnet to the mainnet has accelerated significantly. Company data shows that 17.5 million users have already completed the KYC process — with AI integration reducing waiting times by about 50 percent. This efficiency increase alone led to token transfers of over 6.42 million PI into the mainnet in December.

This dynamic migration is directly reflected in exchange holdings. Analysis data from PiScan documents continuous net inflows: within 24 hours, investors parked 177,867 PI tokens on centralized trading platforms. The total holdings on CEX wallets have grown to 437.88 million units — a clear sign of increased liquidation readiness. For the price development, this means a structural burden as long as demand does not absorb the increasing supply.

Technical signals reinforce selling pressure

The chart shows a scenario where bears currently hold the upper hand. PI is trading well below the 50-day exponential moving average (EMA) at $0.2394 — a psychologically important resistance level. The price stabilized on Monday, but the overall trend remains negative.

Common indicators confirm this skepticism: the Relative Strength Index (RSI) stands at 43 points, below the neutral 50 mark, with a downward slope. The MACD shows both lines below the zero line — a classic sign of ongoing selling momentum. This technical setup amplifies the already negative sentiment.

From an analytical perspective, a layered risk level is emerging: the first support level is at $0.1919 (October low on the 11th). If this support is broken, a test of the all-time low at $0.1533 from October 10th is possible. A stable breakout above the 50-day EMA would be necessary to neutralize the current downtrend scenario.

Future prospects depend on demand fundamentals

Whether the tense situation will ease ultimately depends on fundamental factors. The growing supply from the Mainnet migration must be offset by real use cases and structural demand. As long as Pi Network primarily functions as a speculative object, pressure on sentiment is likely to persist. Sustainable stabilization requires the ecosystem to develop beyond mere token migration dynamics — for example, through tangible use cases that generate economic value.