Pi Network pumps 13%! Still down 86% from its peak, the unlocking wave is approaching, intensifying the divergence between bulls and bears.

Pi Network (PI) has seen a double-digit pump in the past week, with the price briefly breaking through $0.46, currently retreating to $0.40, marking a weekly increase of about 13%. However, compared to the historical high reached in February, PI is still down over 86%.

As 170 million tokens are about to be unlocked, the amount held by exchanges continues to rise, and the project team releases multiple positive news, the market shows a clear divergence regarding the next trend of PI.

Price rebound triggers long and short showdown

According to CoinGecko data, PI fell back to 0.40 USD after reaching 0.46 USD on August 10.

Some traders are optimistic about the future market. For example, user Friedrich has stated that he has established a long position, expecting that the "divergence" market will bring substantial profits.

However, some analysts remain cautious, such as pinetworkmembers who believe that the $1 target is "difficult to achieve in the short term" and suggest that investors should wait and see.

Unlock tide and the amount of tokens held by exchanges may become a source of selling pressure

(Source: PiScan)

On-chain data shows that centralized exchanges hold more than 407 million PI tokens, of which Gate.io accounts for 194 million.

In addition, nearly 170 million PI will be unlocked in the next 30 days, with 9.8 million being released on August 16 alone, setting a new historical record.

Although transferring tokens to an exchange does not necessarily mean an immediate sell-off, it may indeed increase supply pressure in the market in the short term.

Project Positive News: Fiat Entry and .pi Domain Extension Auction

Recently, Pi Network announced that TransFi has completed KYB verification, becoming a new fiat gateway partner, and integrated with the Pi wallet through Onramper, allowing users to purchase PI directly with local currency.

Other partners that have completed KYB include Onramp Money and Banxa.

At the same time, the .pi domain auction has been extended until the end of September, allowing users to bid for exclusive addresses ending with .pi, similar to Ethereum's .eth, enhancing the convenience of payments and interactions.

Short-term outlook: Opportunities and risks coexist

Currently, the upward momentum of PI is supported by positive news from the project, but the upcoming wave of unlocks and the increase in the amount of coins held by exchanges may become key factors suppressing the price.

If the market can absorb the new supply and stabilize above $0.40, PI may have the opportunity to challenge $0.46 again or even higher; on the contrary, if selling pressure increases, the price might retest the support level at $0.35.

Conclusion

Pi Network is currently at a critical moment of intertwining bulls and bears: on one hand, the fiat currency entry and the .pi domain are adding vitality to the ecosystem; on the other hand, the risks of unlocking and selling pressure cannot be ignored. Investors should closely monitor the unlocking points in mid-August and changes in market trading volume to determine whether PI can continue its pump. For more real-time market information and in-depth analysis, please follow the official Gate platform.