Pi Coin Declines as Legal Uncertainty Intensifies Selling Pressure

Pi Coin is under renewed selling pressure, falling almost 3% in a single day and 9% over the last week. Its current price of $0.2105 represents the lowest level in nearly a month and a drop of more than 92% from its all-time high. Concerns over legal issues are adding uncertainty, fueling doubts about whether the downward trend will persist.

Pi Coin Legal Issues

Pi Coin’s recent drop is largely linked to legal uncertainty. A U.S. lawsuit filed on December 10 accuses Pi Network’s parent company of secretly selling 2 billion tokens and moving user funds without permission, claiming $10 million in damages. Some analysts say parts of the case are flawed, but Pi’s price dropped 4.35% after the news, showing how legal issues affect investors.

The plaintiff, Harro Moen, says SocialChain and its executives committed fraud through hidden token transfers and delays in network migration. He also claims Pi misled over 60 million users about decentralization, while it is run by three validator nodes controlled by the company. Pi Network has not responded.

Legal uncertainty often causes panic selling, especially for projects with centralized control like Pi. The network has faced skepticism before. In early 2025, Bybit’s CEO described Pi as a scam after the mainnet launch and explained the reasons for not listing it. Even if the claims are not proven, they still influence investor behavior.

Signs of Accumulation Amid the Decline

Despite ongoing legal issues, some large investors seem confident in Pi Coin. One major whale recently moved 1.62 million tokens from OKX three days ago and another 430,536 on Sunday, showing continued accumulation. Transfers from Gate.io suggest the investor may be testing the process but is still building a position. The whale now holds about 390.97 million tokens, worth around $86 million.

Some analysts question the plaintiff’s claims. The reported drop from $307 to $1.67 appears to reflect pre-mainnet IoU trading, not the real token, which reached $2.99 in February. Claims of unauthorized transfers of 5,137 coins are also hard to verify.

I think the lawsuit is flawed on multiple levels.

1. The plaintiff, Moen, accuses Pi Network of fraud for dropping the price of Pi from $307.49 to $1.67.
The price of Pi has never been above $3 after the CEX listings. The $307.49 figure mentioned in the case is almost certainly… pic.twitter.com/p7fbRtKKgI

— Dr Altcoin ✝️ (@Dr_Picoin) December 10, 2025

Technical indicators hint at possible support from big buyers. The Chaikin Money Flow, which tracks institutional inflows and outflows, shows a difference between falling prices and money entering the market. CMF has not crossed zero yet, but the trend suggests some investors may be buying dips, offering some stability.

Technical Indicators and Key Levels

From a technical standpoint, Pi Coin recently fell below $0.219, completing a head-and-shoulders formation that suggests a possible drop toward $0.169. Immediate resistance is at the 50-day moving average of $0.2375, while the key support to monitor is $0.192. A move below this level could confirm the pattern and drive the token toward its next low.

For a short-term rebound, Pi Coin needs to reclaim $0.233, above the right shoulder, showing early improvement. A full reversal would require a rise above $0.284, past the head, before stronger momentum returns.

What to Expect from Pi Coin?

Pi Coin’s recent drop results from a mix of legal uncertainty and technical weaknesses, but the situation is not completely negative. Large investors are accumulating, and money flow indicators hint at a potential rebound. Still, caution is needed, since ongoing lawsuits and centralization issues continue to affect retail sentiment.