Pi Network price risks crash on Christmas Day as 8.7M token unlock looms

Pi Network price has formed a bearish setup just as roughly 9 million tokens are set to be unlocked on Thursday, Dec. 25. This could lead to renewed selling pressure on the token.

After hitting a November high of $0.279, Pi Network  fell 31% to an annual low of $0.192 last week. 

While it managed to recover to $0.214 over the weekend amid dip buying, demand for the token was once again dampened, and fell to $0.203 when writing, as investors remained in a wait-and-watch mode ahead of the release of the US initial jobless claims data.

Investor demand also faltered due to the 8.7 million PI token unlock worth $1.76 million set for tomorrow, Dec. 25, data from PiScan shows. It stands as the largest token unlock for this month, which is still set to see nearly 54.7 million tokens released into circulation in total, worth around $11.07 million.

Large token unlocks such as this reduce the scarcity of the token and tend to put more selling pressure on the price, especially if not met with immediate buying demand to absorb the excess supply.