Pi Network's core team smashed the market! The single-day sell-off of 2700 tokens triggered a crisis of trust

Pi Network fell below $0.1700, down 4% weekly and falling for four consecutive weeks. The Pi Foundation sold 2,700 coins (from the 5,000 plan) in 24 hours, and the core team held 71 billion coins, triggering a crisis of trust. MACD is bearish, RSI 19 is oversold, targeting support at $0.1533 to $0.1502, down 20% month-on-month.

The core team’s 71 billion holdings detonated a crisis of trust

! [Pi Core Team Wallet] (https://img-cdn.gateio.im/social/moments-87a9b3933a-863113f640-8b7abd-e2c905)

(Source: PiScan)

The Pi Network core team’s wallet holds over 710M PI tokens, of which 2,700 have been removed in the last 24 hours, likely exacerbating the current sell-off. The 2,700 tokens were strategically withdrawn from a larger plan to transfer 5,000 PI tokens to the core team’s wallet, reducing confidence in the Pi Foundation. The ongoing outflow from the Pi Foundation wallet could lead to a more significant pullback in the price of PI.

The size of the 710M holdings is extremely rare among cryptocurrency projects. At the current price of $0.17, this equates to about $120 billion in potential selling pressure. More worryingly, this 2,700K sell-off is only part of a 5,000K transfer plan, meaning more tokens may flow into the market in the future. This anticipated increase in supply is putting long-term pressure on prices.

The selling behavior of the core team has severely damaged community confidence. Pi Network’s supporters are mostly retail miners who accumulate PI tokens through mobile phone mining, anticipating future price increases. However, when the core team continues to sell even though the price has fallen, this behavior is seen as a “betrayal” by the community. Many users took to social media to express their anger, questioning the core team’s motivations and the long-term viability of the project.

The three major doubts of the core team’s selling

Positions are too concentrated: 710 billion coins account for a high proportion of the total supply, forming a centralization risk

The timing of the sell-off is questionable: Continued shipments after prices have fallen for four consecutive weeks, exacerbating panic

Lack of transparency: The 5,000 transfer plan was not announced in advance, and the implementation process was not transparent

From a supply and demand perspective, the continued selling of the core team will suppress prices in the long term. Even if there is a short-term rebound, as long as the core team’s large holdings remain, the market will continue to worry about when the next wave of sell-off will come. This sword of Damocles hanging over its head makes it difficult for Pi Network to attract new funds, as no investor is willing to buy knowing that there is huge selling pressure.

The technicals are multiple bearish, confirming the target of $0.15

! [Pi Network Daily Chart] (https://img-cdn.gateio.im/webp-social/moments-87a9b3933a-6164cca53a-8b7abd-e2c905.webp)

(Source: Trading View)

On Thursday, the Pi Network price fell below $0.1700, extending its decline by about 20% so far this month. Currently, Pi Network stock price is in a phase of finding support, with its price near the $0.1533 to $0.1502 zone, which is framed by the October 10 and January 19 lows, respectively. At press time on Thursday, PI was down slightly by 2%, trading lower for the fourth consecutive week with a price target of $0.15.

The technical indicators on the daily chart reaffirm the bearish bias of the trend momentum. The Moving Average Convergence/Divergence Indicator (MACD) trend line remains below the signal line, and the negative histogram persists, indicating stable bearish momentum. The MACD is an important indicator of trend strength and direction, and when the fast line is consistently below the slow line and the histogram is negative, it indicates that the downtrend is continuing. Looking at the pattern of the MACD, there are no signs of a reversal in the short term.

In line with the downward bias, the Relative Strength Index (RSI) is consolidating around 19, deep in the oversold region, indicating significant selling pressure. An RSI below 30 is generally considered oversold, while a reading of 19 indicates that the market is already extremely pessimistic. However, oversold does not imply an immediate rebound, and in a strong downtrend, the RSI may remain in the oversold zone for an extended period. Only when the RSI starts to bounce upwards from the oversold zone can it be seen as a signal of weakening downward momentum.

If PI suddenly reverses its downtrend, it will face resistance at the $0.1919 support level, the October 11 low. This price level has provided support in the past but often turns into resistance once it falls. If the PI price rebounds, $0.1919 will be the first test, and a breakout can only talk about higher targets.

The Pi Foundation dumped over 2,700 PI tokens in 24 hours, exacerbating supply pressures. Against the backdrop of continued strength in bearish momentum, PI’s technicals remain skewed to the downside. The support zone of $0.1533 to $0.1502 is key to the long-short showdown, and a failure could accelerate the decline to $0.12 or even lower. Conversely, if it successfully holds and cooperates with the RSI to rebound from the oversold area, it may form a short-term bottoming opportunity.

Pi Network’s long-term viability is questionable

Pi Network’s sell-off is not only a short-term price issue, but also raises questions about the long-term viability of the project. The core team holding such a large proportion of tokens is itself a serious centralization problem, which runs counter to the core idea of cryptocurrency decentralization. When the core team chooses to sell rather than support the price during a market downturn, this behavior sends an extremely negative signal to the market.

Pi Network bills itself as a “minable for everyone” mobile blockchain project, attracting tens of millions of users to participate. However, the mainnet has been disappointing after its launch, with prices continuing to fall, core teams selling, and ecological applications scarce. Many early supporters began to question whether this was just a well-designed token distribution plan, with the core team gradually cashing out after listing by accumulating huge holdings.

For investors, Pi Network currently presents extremely high risk and lacks clear value support. The lack of substantial applications, the continued selling of the core team, and the overall bearish technical aspects all point to a conclusion: participating in Pi Network at this stage is more like speculative gambling than rational investment.