Pi Network (PI) faces further downside risk as supply on CEX surges

Pi Network (PI) is recording a steady decline, continuing to trade below the 50-day Exponential Moving Average (EMA) and currently hovering around the $0.2200 mark on Monday. The coin faces the risk of a deeper drop as supply on centralized exchanges (CEX) increases significantly, while the number of mainnet tokens being transferred spikes. Technically, the current outlook for the PI token remains bearish.

Increasing Supply Pressure

The continuous inflow of PI tokens onto exchanges indicates a clear rise in selling pressure. According to data from PiScan, in the past 24 hours, centralized exchange (CEX) wallets have recorded 177,867 PI deposited, bringing the total balance to 437.88 million tokens.

PI balance on CEX | Source: PiScan One of the main drivers of this phenomenon is the migration of tokens from testnet to mainnet in Pi Network, as 17.5 million users have completed KYC (Know Your Customer) verification. Notably, thanks to the integration of AI in the KYC process, verification waiting times have been reduced by up to 50%, enabling faster token migration. According to PiScan, as of now in December, more than 6.42 million PI tokens have been migrated to mainnet.

PI migration data | Source: PiScan However, if the network does not generate real demand for the token through practical applications, investor confidence may continue to decline, thereby maintaining or even increasing selling pressure on the market.

Technical Outlook: Targeting $0.1919

Pi Network maintained its pace in Monday’s session after dropping nearly 2% on Sunday. The path of least resistance for the PI token is currently headed toward the $0.1919 low recorded on October 11. If this level is lost, the token is likely to continue plunging toward the record low of $0.1533 set on October 10.

Technical indicators on the daily chart show that selling pressure is clearly increasing. The Relative Strength Index (RSI) oscillates around 43, below the neutral threshold and sloping downward, signaling the potential for further price declines.

Daily PI/USDT chart | Source: TradingView Meanwhile, the MACD indicator maintains a sell signal as both the MACD line and the signal line remain below zero, reinforcing the bearish pressure.

To reverse course and recover the bullish trend, the PI token needs to quickly break above the 50-day EMA at $0.2394, a key turning point that will determine the strength of the short-term uptrend.

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