Three reasons why the Pi Network (PI) may crash again after reaching the 3-week high

Meanwhile, some market watchers believe that PI could eventually break above $1.

The cryptocurrency market continues its impressive recovery, and Pi Network’s PI stole the show with an impressive 15% daily gain.

However, some factors indicate that its price may drop again soon.

Time to chill?

PI is the top 100 cryptocurrency today (March 5), reaching a three-week high of $0.20 (according to CoinGecko). Its market capitalization exceeded $1.9 billion, making it the 43rd largest digital asset.

Perhaps the catalyst fueling the rally is the broader revival of the cryptocurrency sector. Bitcoin (BTC) briefly rose to almost $74,000, Ethereum (ETH) neared $2,200, while popular altcoins such as Monero (XMR), Aster (ASTER) and Toncoin (TON) rose 6-7% on the 24-hour chart.

PI Pump is also compatible with the latest updates announced by Team Core. As Crypto potato reported, protocol v19.9 migration completed successfully. The next version is v20.2 and it is expected to be released by Pi Day 2026 (March 14).

The upcoming locks show that PI is not out of the woods yet. The data indicates that a large number of coins will be released in the coming days: a development that does not guarantee a drop in price, but increases immediate selling pressure. March 7 is slated as a record day, with around 21 million PIs being released.

The second decreasing factor is the increase in the supply held by the exchanges, which now stands at about 365.5 million coins. Such a shift from self-sustainability to centralized platforms is often interpreted as a pre-sales step.

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Last but not least, we will touch on the PI Relative Strength Index (RSI). A technical analysis tool measures the speed and magnitude of recent price changes and is used by traders to identify trend reversals. It runs from 0 to 100, with ratios above 70 indicating that the asset has entered overbought territory and may be on the verge of a reversal. As of press time, RSI PI is around 72.

What about further benefits?

Some market observers expect the PI rally to continue in the short term. User X ALTS GEMS Alert has predicted that the price could rise above $0.30 if the key level holds around $0.19.

“Building momentum… a breakout can make it very high,” they added.

Whale Hunter predicted that the PI will move “small by small”, starting at $0.20, then $0.40, and finally breaking out to $0.70 and beyond $1. “This is how crypto works. In the end, you get X5 to X10 profit,” they suggested.

Meanwhile, speculation is growing that leading crypto exchange Kraken may list its original Pi Network cryptocurrency on Pi Day. Such a move would increase liquidity, improve access, strengthen reputation and potentially support a positive price reaction.