PI’s Bear Pennant Signals 20% Drop in Prices
Pi/USDT has formed a bear pennant pattern—a short consolidation that follows a sharp decline and often signals continuation to the downside.
The pattern became visible after the strong price drop on April 12, 2025, and has extended through April 22. Two converging trendlines, marked by lower highs and higher lows, have tightened into a triangle formation. This setup reflects uncertainty, but in most cases, it favors a bearish breakout.
The chart also shows a projected breakdown target near $0.50. This level matches the height of the previous sharp drop that formed the pennant’s flagpole. A dotted breakdown path drawn from the apex suggests the move could accelerate if support fails, with a potential landing near the $0.5096 mark based on technical projection, down 20% from the current price levels.
On the 4-hour timeframe, the Relative Strength Index (RSI) reads 49.92. This neutral value indicates that momentum is balanced. However, if RSI crosses above 50 with increased volume, it may support a bullish scenario. If not, sellers could regain control and push the price toward the projected $0.50 level.
The 50-day exponential moving average (50-day EMA; the blue wave) is serving as an additional resistance alongside the pennant’s upper trendline, which may increase PI’s odds of undergoing the projected downside move toward $0.50.
Whales Pull $27M Pi as 1.5B Tokens Set to Unlock
Moreover, on-chain data shows that whales moved 41 million Pi tokens, worth over $27 million, off centralized exchanges between April 18 and April 20. Most of these withdrawals came from OKX, where Pi Coin is actively traded. Analysts often interpret such large withdrawals as accumulation, suggesting expectations of a price rally.
This trend coincides with a drop in circulating supply on exchanges, historically linked to price increases when demand rises. If the supply keeps falling, Pi Coin could gain upward momentum after consolidation.
Meanwhile, Pi Network’s official roadmap confirms that around 1.5 billion PI tokens will be unlocked over the next year. These tokens are tied to the migration from the enclosed mainnet to the open mainnet, which launched on Feb. 20, 2025. Despite this potential sell pressure, the token has maintained support above $0.60 since late March.
The Pi Network team allocates 65% of its maximum supply to community mining rewards. The remaining tokens go to the ecosystem fund, liquidity pools, and the core team. This token distribution aims to encourage long-term growth while managing unlock-driven volatility.
