Why Pi Coin Price Is Struggling Despite Crypto Market Recovery

Pi Coin price continues to remain under pressure even as the broader cryptocurrency market shows early signs of recovery this January. While major digital assets like Bitcoin and Ethereum attempt to stabilize after recent volatility, Pi Network price has largely stagnated near the $0.20 level for several weeks. This prolonged consolidation has raised concerns among investors, especially since Pi Coin is now trading more than 90% below its all-time high.

One of the primary reasons Pi Coin price is not rising is the continuous increase in circulating supply. As Pi Network progresses with its mainnet migration, nearly $1 million worth of PI tokens enter circulation daily through KYC-verified account migrations and token unlocks. Although over 4.83 billion PI tokens remain locked, the gradual release into the open market has created persistent selling pressure. This growing supply has not been met with proportional demand, resulting in a clear supply-demand imbalance that continues to suppress price momentum.

Market-wide sentiment has also contributed to Pi Coin’s weak performance. The global crypto market cap currently sits around $3.12 trillion, reflecting a slight decline. Bitcoin is hovering near $95,000, while Ethereum trades just above $3,200 after failing to sustain recent breakouts. Investor confidence has been shaken by regulatory uncertainty, particularly following the U.S. Senate’s decision to cancel the markup of the Crypto Market Structure Bill, which has weighed on the entire market, including Pi Network.

Another major factor limiting Pi Coin price growth is low trading volume. Daily trading activity remains below 7 million coins, which is relatively small for a project with Pi Network’s user base. More notably, sell-offs tend to occur with higher volume than price rebounds, signaling stronger selling pressure and weak buying interest. This pattern suggests that distribution may still be ongoing, further dampening bullish sentiment.

From a technical perspective, Pi Network price is trading around $0.205, holding just above the key $0.20 support level. Indicators such as RSI near 45 and a neutral MACD reflect weak momentum and a lack of strong directional bias. If buying volume improves and price holds above $0.20, Pi Coin could attempt a move toward $0.23 and higher. However, a breakdown below $0.20 may push the price toward the $0.18 support zone.