Pi Coin Could Drop to New Lows in November: Here’s Why

Market activity for Pi Network (PI) shows that November could be difficult for the token. Even after falling by over 92% from its peak, the token shows indications of possible continued decline. While Pi is recognized for its distinctive approach to blockchain adoption and its loyal community, external pressures continue to affect its performance.

High Volume of Pi Entering Circulation

A key factor influencing Pi’s price is the number of new tokens entering circulation. Piscan reports that about 4.85 million Pi tokens are added each day, and nearly 145 million will be available over the next 30 days. This trend will continue into December, when more than 173 million tokens are expected, marking the largest monthly increase until 2027.

Steady growth in token supply can put ongoing pressure on prices. Even if demand stays the same, more tokens make it harder for the price to rise quickly. It is similar to what happens in commodity markets when too much product keeps prices low.

Investors should also note how the token release schedule affects market sentiment. Large, predictable releases can lead traders to sell early, adding more downward pressure. Analysts say this effect will likely influence Pi’s price through November and early December.

The Rise of Exchange Reserves

Another sign of potential weakness is the increase in Pi holdings on exchanges. In early November, exchanges held about 423 million Pi. By mid-month, this had grown to nearly 426 million, the highest level ever.

Higher balances on exchanges usually mean tokens are ready to be sold. Even without much trading, knowing a large supply could appear on the market at any time can hold back price growth. It is a quiet reminder that selling pressure could increase.

The higher reserves also point to a broader behavioral pattern. Some may be moving tokens to exchanges, expecting short-term price drops. This can lead to more selling and make price recovery difficult until these tokens are bought or stored for the long term.

Weak Trading Activity and Market Momentum

Liquidity and trading volume are essential for sustained price growth, and Pi currently faces difficulties in both areas. Spot trading volume stays low, around $30 million over 24 hours, while monthly volume has dropped to $1.2 billion. Price and trading activity are falling together, a trend that rarely supports strong rallies.

Limited liquidity means even modest sell orders can have a noticeable effect on price. It also shows cautious market interest, as many traders wait for better conditions before buying. This caution can keep prices under pressure, especially with steady token inflows and rising exchange reserves.

Still, Pi benefits from a dedicated community. Some Pioneers see the current prices as a buying opportunity. They note that the circulating supply is smaller than the total supply, and short-term price moves are mostly influenced by market makers. This view brings some optimism, but it has not yet led to strong trading activity.

An Outlook for Pi Coin

Overall, November seems to be a challenging month for Pi Coin. Token circulation is rising, exchange reserves are growing, and trading activity is low, which may keep the price under pressure. Even minor sell orders could move the market, and cautious sentiment may limit growth. Yet, Pi Coin keeps a loyal community, and some investors see the current levels as a potential opportunity.