We are also going to take a look at the PI token unlocks for August to see whether this rally is actually sustainable.
Although most of the cryptocurrency market has charted minor gains over the past day, with BTC nearing $65,000, Pi Network’s native token has stolen the show with a massive surge.
It exploded above a key resistance, which is close to being solidified as support now, and tapped a multi-week peak.
PI on the Offensive
The popular altcoin has been among the most volatile crypto assets lately. It was less than a month ago when it plummeted to a new all-time low of just over $0.07 after it broke below key support levels at $0.10, $0.09, and ultimately $0.08. This came as the overall market sentiment was quickly deteriorating, and investors were leaving en masse.
It appeared at the time that none of the team’s updates, redesigns, or initiatives could halt the freefall, but PI finally found support at $0.07. The bulls quickly returned and pushed the asset to $0.10 within less than a week.
However, that was another short-term price pump, as in many similar occasions in the past. PI got rejected almost immediately and slumped below $0.075 once again by the end of the month.
It rebounded to above $0.08 in late July and early August and remained there for several days. The past 24 hours have been significantly more positive, as PI made the headlines once again, but in a good way. It exploded from $0.083 to a three-week peak of $0.096, marking a 15% surge at one point.
Although it was rejected there, it still sits above $0.09 as of press time, and its market cap has climbed back to the coveted $1 billion mark.
Sustainable or History Will Repeat?
As mentioned above, essentially all PI breakout attempts have met severe resistance, and the subsequent move is generally another painful leg down. The question now is whether today’s surge is another example of this or whether PI will finally stage a more profound recovery.
Data from PiScan shows that the number of tokens to be unlocked in August is actually higher than in July and June. Fewer than 77 million coins were released in June, while the figure for July was 103.7 million. 128 million PI is scheduled to be unlocked in August, and another 132.7 million in September.
This worrisome rise could increase immediate selling pressure from investors who have been waiting for their assets for a long time and could effectively halt PI’s price recovery if they decide to offload en masse.