The Pi Network is facing mounting sell pressure as over six million PI tokens flood cryptocurrency exchanges, triggering growing concerns of a major price crash. Trading at around $0.5745, Pi Coin is approaching a critical support level at $0.56. If this level is breached, technical analysts warn the price could tumble as low as $0.40 — marking a possible 35% decline from its recent levels.

The recent price action suggests a deep loss of confidence among short-term traders and investors. Just weeks ago, Pi Coin was among the most talked-about tokens in the altcoin space, surging as high as $0.8705 following the introduction of its Open Mainnet. That rally, which marked an explosive 2951% surge in the token’s first six days, has since faded. From late February to April 4, the price dropped over 81%. Then came a brief recovery of 112% from May 7 to May 13, only to plunge again by 43% in the following three days.

Since mid-May, Pi has been consolidating sideways, attempting to stabilize but failing to regain any sustainable bullish momentum. The token even revisited the $0.40 support level last week, and analysts now say the likelihood of testing that support again is growing by the day.

Adding to the concern is the sharp drop in trading volume. In just the last 24 hours, Pi’s volume has declined by 44%, indicating a significant decrease in buying interest. Simultaneously, on-chain data reveals that 6.11 million PI tokens were deposited into exchanges, while only 3.8 million were withdrawn — resulting in a net inflow of 2.27 million tokens. This suggests many holders are preparing to sell, potentially anticipating further declines in price. Such exchange activity often precedes increased volatility and sell-offs, especially when combined with declining volumes and negative momentum.

Technical indicators are offering little comfort to bulls. The Bollinger Bands have tightened, signaling that a major price move is imminent. Currently, the token is trading below the lower band, set at $0.5669. If the price closes below this level, it would signal a bearish breakdown. Meanwhile, the Average True Range (ATR), a measure of volatility, has dropped from 0.1771 in mid-May to just 0.0612 — confirming a period of low volatility and building pressure for a breakout. Unfortunately for bulls, the odds favor the downside given the token’s weak positioning.

The 50-day simple moving average (SMA), which currently sits at $0.7074, also paints a bearish picture, as Pi trades well below it. When the price consistently remains under the 50-day SMA, it typically suggests that sellers are firmly in control.

Despite these troubling signs, there are a couple of potential catalysts that could shift the narrative. First is the upcoming Pi2Day event on June 28 — a celebration of the Pi Network’s community and ecosystem. The core development team often uses this day to introduce major updates, which could bring renewed attention and optimism to the project. Second, rumors of a possible listing on Binance have been circulating. A listing on such a major exchange could bring an influx of liquidity, potentially reversing the current downward trajectory and fueling a short-term price rally.

Still, even with potential bullish triggers on the horizon, the immediate outlook remains fragile. Unless Pi can reclaim and hold above key resistance at $0.80, short-term traders may continue to exit their positions. Meanwhile, a break below $0.5669 could open the door for a swift drop back to $0.40 — the level Pi last tested during its May lows.

Some long-term analysts continue to hold a bullish view, forecasting Pi Coin could reach between $314 and $1,000 by 2030 due to its growing user base and expanding ecosystem. But in the near term, sentiment is cautious, and the token’s next move will likely be shaped by the outcome of Pi2Day and whether or not a major exchange listing materializes.

Until then, Pi remains trapped in a precarious range, with volatility looming and investor sentiment hanging in the balance.