Pi coin drops to $0.211! 131 million unlocked in January, a tidal wave of selling pressure is coming

Pi coin drops 1.38% to $0.211, weekly increase of 5% but encounters resistance at $0.22 and pulls back. Core selling pressure: 6 million coins unlock on 1/2, with 131 million coins to be released in the next 30 days. The team launched v23 upgrade, but the unclear goals for 2026 raise market concerns. $0.20 is a key psychological support level; a break below could intensify panic.

Token Unlock Death Spiral

About 6 million PI tokens will unlock on January 2, and more importantly, approximately 131 million PI tokens are expected to be released within the next 30 days. When new tokens enter circulation, it means the available supply increases. If demand growth cannot keep pace, prices are usually impacted. This has happened before; after the large unlock in December 2025, PI price plummeted about 14%.

This “unlock and sell” pattern stems from structural issues among holders. Pi Network uses mobile mining, allowing most users to acquire tokens at zero cost. For zero-cost assets, any price is profitable, which creates a strong motivation for holders to cash out immediately after unlock. Unlike Bitcoin miners or Ethereum stakers, these holders have no real costs, lacking a psychological price support floor.

Although the unlock rate is expected to slow after mid-January, short-term risks remain. Many holders worry that ongoing token releases could limit a strong rebound in price. From a supply-demand perspective, unlocking 131 million coins at current prices adds about $27.6 million in potential selling pressure, while Pi’s daily trading volume is only around $16 million. The supply increase far exceeds market absorption capacity, making downward pressure inevitable.

Three Major Structural Issues Amplify Downside Risks

Extreme Lack of Liquidity: Pi is only listed on a few exchanges like Gate.io, with a daily trading volume of just $16 million. This level of liquidity cannot effectively absorb the selling pressure from large unlocks.

Holder Costs Near Zero: Mobile mining allows most users to acquire tokens at no cost, making any price profitable. This leads to immediate cash-out behavior after unlock becoming the dominant pattern.

Lack of Practical Use Cases: Pi Network is still widely regarded as a “ghost chain,” with a lack of popular dApps and real demand on the chain. The v23 upgrade improves technical capabilities, but killer applications have yet to emerge.

Optimism for v23 Upgrade and Disappointment with 2026 Roadmap Coexist

Currently, opinions on Pi Network are mixed. On the positive side, the team recently launched the v23 protocol upgrade. Supporters see this as an important step to enhance network utility, bringing faster performance and better developer tools. Additionally, plans for decentralized exchanges and app development make long-term supporters optimistic.

However, this optimism contrasts sharply with growing dissatisfaction among some community members. The core team’s recent update report focuses on achievements in 2025, but provides little detail on specific goals or timelines for 2026. This lack of transparency raises doubts among many investors. One community member bluntly summarized the collective frustration, stating that years of hype, delays, and vague plans have damaged trust. From this perspective, the market does not reward promises or dreams but reacts to clear actions and results.

Looking back, 2025 was significant for Pi Network. The launch of the open network brought broader connectivity and practical applications, expanding into app development, gaming, and even early experiments with AI tools. Millions of users completed identity verification and connected to the mainnet, demonstrating strong community engagement. The project also invested in startups, improved node systems, and supported developers through hackathons and test environments.

But the current market focus is on the future. Due to the unclear goals for 2026, many traders remain cautious. This uncertainty is reflected in the price, causing Pi to underperform the overall crypto market. Simply put, PI surged too quickly in a short period; when this happens, early buyers often sell to lock in profits. As selling increases, the price begins to decline.

$0.20 Is the Last Line of Defense

The next critical area to watch is around $0.20. This level has strong psychological significance for traders, and a break below could trigger panic selling and further declines. Over the past week, PI’s price rose nearly 5%, giving some holders hope for a short-term rebound. However, after reaching around $0.22, the upward momentum weakened, making this level a resistance point where many traders lock in profits.

Currently, the price forecast for Pi coin reflects both short-term selling pressure and long-term uncertainty. Maintaining the price above $0.20 in the coming days is crucial. If the planned ecosystem tools (such as decentralized exchanges) launch successfully and perform as expected, it could help restore market confidence. Until then, PI remains under pressure, facing ongoing development progress and market demands for clearer direction and deliverables.

For current Pi holders, assessing risk tolerance is essential. If further declines are unacceptable, reducing positions above $0.20 may be prudent. If choosing to hold, setting a clear stop-loss below $0.19 is advisable to prevent further losses.