Pi Network is "pushed to the wall" in September – The accumulation phase before soaring?

September marks a significant phase for Pi Network (PI), as this cryptocurrency begins trading around the 0.35 USD mark. Amid increasing supply pressure and upcoming token unlocks, the market is asking a big question: Will Pi bounce back strongly, or will it face new lows? In the context of many consecutive technical and financial events, analyzing the factors affecting Pi's performance has become more essential than ever.

Pressure from supply on the exchange

One of the biggest challenges for Pi Network (PI) in September is the continuous increase in supply on centralized exchanges (CEX). Data from Piscan shows that the amount of Pi currently held on these exchanges has exceeded 420 million PI, setting an all-time high. In comparison, in mid-August, Bitcoin Magazine reported 409 million PI, meaning that in just two weeks, over 11 million PI have been transferred to the exchanges, indicating a significant and rapid increase in supply.

The supply of Pi Coin on exchanges | Source: Bitcoin MagazineThis strong increase is a clear warning signal of rising selling pressure in the market. When the circulating supply of tokens on the exchange is high, investors tend to look for profit-taking opportunities, especially in the context of daily trading volume remaining below 100 million USD. Low liquidity combined with abundant supply creates a high-risk setup, making the Pi market susceptible to downward fluctuations.

Additionally, according to Piscan's forecast, in September, more than 164 million PI will be unlocked according to the defined token release roadmap. This is a significant additional supply, likely to increase selling pressure further, especially as the cryptocurrency market in general is undergoing a correction phase. In this context, the possibility of Pi bouncing back immediately is very limited, and investors need to have a cautious strategy when facing rising supply pressure.

Monthly Pi Unlock Statistics | Source: Piscan## Recent events and limited impact

In the context of increasing supply pressure, Pi Network has implemented several important upgrades to strengthen its infrastructure and improve network performance. Notable advancements include:

• Launching Pi Node on Linux, helping to expand the ability to participate in the network and facilitating an active technical community.
• Upgrade the protocol to version 23, improving processing speed and security, while supporting future expansion features.

Alongside technical improvements, Valour, a European digital asset management company, has launched eight new cryptocurrency ETPs, including a product based on Pi Network, listed on Sweden's Spotlight Stock Market. This event marks a significant step forward in expanding Pi's accessibility to traditional investors.

However, despite these positive updates, the price of Pi remains around 0.35 USD, with no significant signs of bounce back. This indicates that the current positive technical factors and ETP listings are not strong enough to offset the selling pressure from the increased supply.

PI Price Chart 1 Day | Source: TradingViewWhen combining factors such as continuously increasing supply, low trading volume, and prolonged selling pressure, the short-term outlook for Pi in September remains quite bleak. Nevertheless, pioneering investors and active holders of Pi continue to maintain faith in its long-term bounce back potential, hoping that infrastructure development steps and interest from ETPs will create momentum for future growth.

Supporting Potential Factors

An important question raised by many investors is: Why hasn't the price of Pi dropped further, despite the market facing significant negative pressure from increased supply and low trading volume? According to pioneering investors, continuous accumulation is the key factor.

Although the current buying power is not strong enough to create an immediate breakthrough, stable accumulation has helped keep the Pi price around 0.35 USD for over a month, preventing the price from plummeting in the context of a market lacking liquidity. This is evidence that a group of loyal investors and "whales" are still actively participating, creating an important psychological support layer.

Investor Drop Spark stated:

"Upgrade Linux node + KYC, MACD & RSI increase, listing of Swapfone and whale buy-ins. With new momentum, the uptrend could reach 0.64 USD if new exchanges continue to list and whale accumulation continues."

From a technical perspective, the price structure of Pi is showing signs of accumulation – similar to altcoins before entering a breakout rally. Low liquidity combined with selling pressure may limit short-term price increases, but long-term accumulation is often a positive signal for a strong upward trend in the future.

Some other investors warn that Pi may drop deeper in the short term before finding a true bottom, but still have confidence in the long-term outlook:

"The Pi balance on exchanges has reached a new ATH. Selling pressure continues. We may see a level of 0.2 USD before reaching 1 USD," Moon Jeef commented.

Source: XIn summary, continuous accumulation, technical upgrades, new ETP listings, and positive sentiment from the community create potential supportive factors, helping Pi maintain a stable price and opening up the possibility of strong price increases in the long term, even when the market is facing many challenges.

Positive signals from the market

In recent weeks, Pi Network has reappeared on the Trendline and Bullish Sentiment lists of CoinMarketCap, indicating a bounce back in interest from the community and investors. This is a positive sign, as market sentiment is often a driving factor for short-term price momentum, especially when cryptocurrencies in general start showing signs of recovery.

Positive psychology not only reflects expectations from the community but also creates support for the price of Pi in the context of ongoing selling pressure from increased supply. As investors and "whales" continue to accumulate, the price of Pi may remain stable or increase slightly, preparing for a strong breakout if the overall market conditions are favorable.

In summary, although September witnessed significant pressure from supply and large token unlocks, Pi Network still maintained stability around the 0.35 USD level thanks to continuous accumulation and strong confidence from pioneering investors.

In the short term, the market may continue to fluctuate due to selling pressure from exchanges and low trading volume, so investors need to be cautious before strong fluctuations.

In the long term, positive factors such as technical upgrades, the listing of new ETPs, and improved market sentiment create a foundation for strong bounce back and growth. If market conditions are favorable, Pi may reach higher price levels in the coming months.

Overall, Pi Network still retains notable long-term potential, and September may be an important accumulation period, preparing for the next price increase cycle of this cryptocurrency.

Annie