Pi Network Faces Breakdown Risk as August Token Unlocks Add Pressure

By CryptoNewsHub Editorial Team | August 2025

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After a hopeful June that brought optimism to Pi Network holders — including the announcement of a new AI initiative for app development — the mood has shifted sharply this August. A looming surge in token unlocks is shaking market confidence, threatening to send the PI token to a new all-time low.

Here’s everything you need to know about the latest developments and what could come next.

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Massive Token Unlocks Begin in August

In July 2025, Pi Network kicked off its token unlock schedule, gradually releasing tokens into circulation — a process set to continue through 2028. While July’s unlock amounted to approximately $28 million worth of PI tokens, August is set to unleash more than $300 million in additional supply.

With this sharp increase, Pi Network’s token supply is accelerating toward its 100 billion token cap — and that’s triggering serious concerns about oversupply and increased sell pressure.

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PI Price Analysis: Breaking Point Approaching?

From a technical standpoint, things aren’t looking much better.

The PI token has been trading under a descending resistance trendline since its February 2025 peak.
It has tested the $0.40 support level twice, rebounding each time — but the price is now teetering just above this critical line.
The third test has traders on edge, with no strong sign of a bounce so far this month.

Momentum indicators are also turning bearish. A bullish divergence in June had sparked hopes of a recovery, but the Relative Strength Index (RSI) is now breaking down — confirming a loss of momentum.

If $0.40 fails to hold in August, the chart shows no substantial support below, meaning a steep drop could be imminent.

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Market Sentiment: Turning Bearish

The mood among traders and analysts is rapidly shifting to the downside. The token unlock flood, combined with weak price action, has created a perfect storm for a breakdown. And with new supply hitting the market during a time of uncertain demand, it’s hard to see a short-term catalyst strong enough to reverse the trend.

Unless we see renewed ecosystem activity or surprising bullish volume, August’s outlook for Pi Network is largely bearish.

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What This Means for Traders

For day traders and short-term investors, this setup offers both opportunity and danger. If you’re looking to trade PI:

Watch the $0.40 level closely. A confirmed breakdown may open the door to a high-volume short opportunity.
Use tools like Grok to track sentiment on X, especially for spikes that could hint at coordinated moves.
Ask ChatGPT for structured setups, including stop-loss zones and profit targets based on real-time data.

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Conclusion: Risk Rising in August

Pi Network may have exciting long-term goals — including AI-driven app development and an expanding ecosystem — but the immediate reality in August 2025 is all about tokenomics and technical pressure.

With a huge supply dump already underway and support levels weakening, Pi is entering a crucial month. If the bulls don’t show up soon, we may be looking at a new all-time low for the PI token — and a cautionary tale for other projects with massive unlock schedules ahead.

Stay updated on Pi Network and more at #CryptoNewsHub — your front-row seat to the digital asset economy.