Pi Network price continues to decline this week, reflecting investor concern over a growing token supply. The coin (PI) hit a one-week low of $0.60 on Friday, representing a 21% drop from its peak this month and continuing the downward trend. The primary driver behind this sell-off is the ongoing daily release of more tokens into circulation. According to PiScan, over 105 million tokens will be unlocked this month alone, adding an additional 1.57 billion tokens in the next twelve months – averaging to over 4 million tokens released daily. These unlocked tokens have a combined value exceeding $954 million, putting them under increasing pressure as their value diminishes. 🤔 📈 The volatile nature of cryptocurrency prices is intrinsically tied to supply and demand dynamics, and an excess of available tokens in the face of weak demand often leads to price depreciation. 🤝 💰 A similar scenario plays out in the stock market where share prices drop when companies issue new shares for capital raising. However, several solutions can mitigate this dilution. One such solution is a large-scale burning operation by the Pi Foundation, as demonstrated through on-chain data showing that they hold over 70 billion tokens worth $40 billion – which they could burn to boost their value. 🔥 Another tactic is to implement a burning strategy for fees generated from Pi’s ecosystem of decentralized applications (dApps). This approach mirrors existing practices in the crypto industry, such as the BSC Chain’s burning of BNB coins worth $152 million. 💸 Pi Network Price Analysis | Source: crypto.news The 4-hour chart reveals a significant decline in Pi coin price over recent days. It retreated after reaching resistance at $0.7860 last week and is now trading around $0.6085, which also serves as crucial support and aligns with the ascending trendline connecting its lowest point since April 7th – acting as the first support of the Woodie pivot point. The price has slightly dipped below the 50-period moving average, indicating a potential bearish breakout towards $0.40 – which represents a 35% decline from current levels. 🚀 A more positive outcome would involve a rebound if Pi receives a tier-1 exchange listing or if developers implement strategies to address the increasing supply.