TL;DR

PI collapsed by double digits, while rising exchange balances and upcoming token unlocks point to mounting selling pressure. Despite the bearish sentiment, the assets RSI at 29 signals oversold conditions, hinting at a possible rebound.

PI Bleeds out Heavily

The cryptocurrency market experienced a sudden and painful correction today (September 22), with Pi Networks PI being among the biggest losers. Its price tumbled by 18% on a 24-hour scale, briefly dumping to a new all-time low of around $0.25 before slightly rebounding to the current $0.29 (per CoinGeckos data). 

PI Price, Source: CoinGecko Its market cap plunged below $2.5 billion, thus making the asset the 62nd-largest in the entire sector. Recall that earlier this year, when PIs price hit an all-time high of $3, the capitalization skyrocketed above $13 billion, positioning the asset in cryptos top 20 club. 

Over the past few weeks, Pi Networks team implemented some vital upgrades that aim to strengthen the ecosystem. Most recently, the X account Pi News revealed that the testnet has been upgraded to protocol v23, which enables more control and new functionalities for users.

Announcements of that type, though, have not been beneficial for PIs price. At the same time, factors like the increased amount of tokens stored on crypto exchanges suggest the pullback might intensify in the short term. Data shows that the figure reached a new record of over 446 million, with almost half of that stored on Gate.io.

The constant transfer of coins to centralized platforms does not guarantee a mass exit, but it is often interpreted as the step before a sale. 

The total unlocks scheduled for the next month also support the bearish scenario. More than 137 million PI are scheduled for release within that period, with October 1 being the record day (13.1 million). The unlocks, albeit not as aggressive as earlier this year, increase the selling pressure.

PI Token Unlocks, Source: piscan.io

The Light at the End of the Tunnel

Contrary to the elements above, which hint at more troubles ahead for the bulls, PIs Relative Strength Index (RSI) suggests the worst might be over. 

The technical analysis tool measures the speed and magnitude of recent price changes to help traders identify potential reversal moments. It ranges from 0 to 100, with values below 30 indicating the asset may be oversold and poised for a rebound. As of this writing, the RSI stands at around 29.

PI RSI, Source: TradingView Meanwhile, some Pi Network community members believe the recent price decline could represent an excellent buying opportunity. Such is the example of the X user Woody Lightyear, who said:

I watched it live. I was waiting for it. The long red wick candle was a beautiful opportunity. Please liquidate the shorts, too. I am buying PI.