Pi Network’s native token, PI, slipped more than 1% on Monday, starting the week under pressure as social chatter and on-chain activity weighed on sentiment. The cryptocurrency is edging closer to its record low amid a widening correction.
Over the weekend, the Pi Foundation executed a large-scale transfer of 500 million PI tokens, coinciding with the token’s decline and raising questions among community members.
Large transfer from Pi Foundation draws attention
Data from PiScan shows that the Pi Foundation’s wallet #14 moved five separate tranches of 100 million PI each into new addresses. The transactions, which marked the first-ever withdrawal from the wallet since its initial allocation of 10 billion PI, were executed without a formal announcement.
The timing of the transfers follows speculation of a potential second migration phase, hinted at by a Pi community moderator earlier this month.
The activity fueled discussion across crypto social channels, with Pi Network’s social dominance rising to 0.202% of all crypto-related posts, above the 30-day average of 0.195%, according to Santiment data.
Pi Network at a technical crossroads
PI is testing a key support level at $0.3442, defined by the August 5 daily close. A confirmed break below this level would extend the prevailing downtrend within the broader falling channel pattern.
The next downside targets sit at the August 1 record low of $0.3220, followed by the channel’s lower boundary near $0.2567.
Momentum indicators are flashing warning signs. The MACD is close to crossing below its signal line, a move that would reinforce bearish momentum and trigger a sell signal. Meanwhile, the RSI has slipped to 38, reflecting rising selling pressure while leaving room for further downside before reaching oversold territory.
Limited upside potential
Should buyers defend the $0.3442 support, PI could attempt a rebound. The first upside test lies near $0.4202, where the 50-day Exponential Moving Average (EMA) converges with the channel’s descending resistance line.
Until then, sentiment remains fragile, and the path of least resistance appears lower as traders weigh the implications of the Pi Foundation’s 500 million token transfer against a weakening technical backdrop.
