On-chain data from Pi Network (PI) appears to contradict the expectations of Pioneers worldwide. The number of Pi coins on centralized exchanges keeps rising, while trading volume drops.

Analysts are warning that these trends could lead to negative price movements shortly. However, the Pioneers’ faith remains one of PI’s strongest assets. Sometimes, a strong and loyal community is enough to spark major breakthroughs in the crypto market.

PI Supply on Exchanges Rises Sharply, Analyst Warns of Potential Drop to $0.1

According to data from Piscan, the number of Pi coins held on centralized exchanges (CEXs) has increased significantly, from 263 million coins in early March to 284 million in May. It now stands at 345 million coins, a surge of over 30% in just three months.

This rising supply raises concerns about potential selling pressure building up in the market.

“The only consistent thing about PI is the increasing number of coins in exchanges. The number now stands at 347.6 million PI. It has been rising every single day,” Investor Moon Jeff commented.

Not only has the coin supply on exchanges grown, but investors have also detected outflows from wallets belonging to the Pi Foundation team. This may suggest the team is either transferring coins to exchanges or using them for other purposes.

The combination of growing supply on CEXs and fund outflows from team wallets could create significant sell pressure. That, in turn, may push PI’s price downward in the near term.

Pi Trading Volume Drops 90%

While the supply is rising, trading activity is plummeting. According to CoinMarketCap data, Pi Network’s weekly trading volume dropped from $5.4 billion to under $500 million between mid-May and now. That’s a decline of more than 90%.

“The strength and power to go up is gone with an always decreasing trading volume,” one investor on X remarked.

In theory, market depth tends to weaken when exchange supply increases and trading volume decreases. If selling pressure rises, prices could fall sharply, even with relatively low trading volumes.

The X account Pinetworkmember stated that Pi Network is at a critical turning point. According to the analysis, PI’s price could plunge to $0.1 or rebound sharply to $1.7. The outcome will depend on market factors and how the community responds. However, the analyst leans toward a bearish scenario.

Additionally, a recent analysis from BeInCrypto pointed out that PI is facing more downward pressure due to upcoming token unlocks. Around 337 million PI tokens are set to be released in the next 30 days.

Despite several bearish on-chain signals, many Pioneers ignore the market price on exchanges. They remain focused on the Global Consensus Value (GCV) of $314,159.

Some have chosen not to sell their PI. However, they refuse to buy more until the Pi Core Team shows clearer progress.

Regardless, the total amount of PI listed on exchanges is still relatively small compared to the more than 4 billion PI in circulation. The rest remains in wallets held by Pioneers, reflecting their long-term belief in Pi Network’s future.