Pi coin key analysis: The core team controls about 90% of the total Token supply, with a price stable above 0.40 US dollars.

In recent months, the price of Pi Network (PI) has sharply fallen from a high of $2.79 to its current level of about $0.49. This decline has been disappointing for many holders and miners, raising concerns about whether the token could fall further. However, according to the latest insights from experts like Dr. Altcoin, it is unlikely that the price of Pi Network will drop below $0.40 in the short term. There are several compelling reasons for this price floor, the most important of which is the core team’s control over the vast majority of circulating Pi tokens.

One of the key factors for the stability of Pi coin's price is that the Pi Core Team (PCT) holds about 90% of the total supply of tokens. This concentrated ownership allows the team to control the unlocking of tokens and regulate the issuance of Pi to the public market. Essentially, the PCT acts as a gatekeeper of supply, adjusting the token flow according to market conditions to avoid excessive sell pressure. This centralized approach has drawn criticism from some in the crypto community for its lack of decentralization, but it also provides a mechanism for maintaining market stability during Pi's early development stage.

If the value of Pi falls below $0.40, the losses may extend far beyond those of the investors. This could damage the reputation of the Token and push it out of the top 30 cryptocurrencies by market capitalization. Such a significant drop could lead to a decline in visibility, investor confidence, and ecosystem participation. For a project that is still in the process of building a developer community and real use cases, maintaining a strong price is crucial for long-term success. The Pi team is keenly aware of this and has historically taken strategic measures to slow down Token issuance during market fluctuations.

In addition, the Pi core team has high hopes for the stability of the token. The platform has made significant statements regarding its application ecosystem, including the recent introduction of over 7,900 applications in the Pi App Studio, indicating that it is continuously developing and that use cases are continually growing. A sharp fall in price not only shakes investors' confidence but may also hinder developers and partners from continuing to work on the platform.

In addition to token supply control, market psychology also plays a role. Many supporters of the Pi Network believe in the platform's long-term vision and are willing to hold rather than sell even when prices fall. This strong community belief system provides another layer of cushioning for prices, helping to resist downward pressure that could otherwise trigger panic selling in the face of insufficient market confidence.

From a technical analysis perspective, the current chart pattern indicates that the price is in a consolidation phase rather than in free fall. The price range of $0.40 to $0.70 seems to be forming strong support and resistance levels, which may persist at least until August. As long as the Pi core team maintains its rigorous token unlocking strategy to avoid market oversupply, this range could become a stable trading zone in the short term. Analysts expect that once the pace of token unlocking begins to slow down in the coming months, the reduction in supply pressure may allow Pi to gradually rise—unless there is a significant negative event or an overall market sell-off.

Nevertheless, the expectations for explosive growth in the short term remain low. There is almost no evidence to suggest that significant collaborations or listings are imminent, leading to a surge in buying activity. However, slow and steady progress seems to be the strategy currently chosen by the Pi Network, focusing on ecosystem development and core infrastructure building rather than chasing rapid market growth.

In conclusion, although the price of Pi Network has indeed felt the pressure of a bearish trend, the likelihood of its Token falling below $0.40 seems quite low under the current circumstances. Since the core team controls the majority of the supply and actively manages the unlocking rate, the project has established a solid defense against extreme devaluation. As Pi continues to build its application ecosystem and gradually reduces the issuance of new tokens, the foundation for a more stable and potentially appreciating price structure is being laid. Currently, the stability of Pi is primarily in the hands of its creators — and they appear to be cautiously fulfilling this responsibility.