Pi Network whale frenzy: $82 million swept up, still doubling down despite October's massive losses

Pi Network (PI) has fallen over 90% from its peak earlier this year and has stabilized around $0.2240. An anonymous “whale” holding PI tokens lost over $40 million during October’s crash but has purchased 5.3 million PI in the past nine days, increasing its holdings to over 371 million tokens, estimated to be worth more than $82 million.

Whale loses $40 million but continues to buy aggressively

A whale holding a total of 371 million Pi tokens, after experiencing a paper loss of over $40 million in October, decided to re-enter the market after two months of silence. Such behavior is rare in crypto investing, as most investors tend to cut losses or pause buying after such significant losses. The whale’s contrarian move demonstrates strong confidence in the long-term value of Pi Network.

In the past nine days, the whale purchased 5.3 million PI, averaging about 590,000 per day. At the current price of $0.2240, this amounts to approximately $1.19 million spent over nine days. This consistent and strategic buying pattern suggests it is not impulsive but a calculated move, possibly believing the current price has bottomed out or is undervalued.

With holdings exceeding 371 million PI, valued at over $82 million, this position represents a significant portion of Pi’s circulating supply. Pi’s total supply is 100 billion tokens, but actual circulation is much lower due to tokens being locked during the mainnet transition. Assuming circulating supply is around 100-200 billion, the whale controls roughly 2-4% of the circulating supply.

Such concentrated holdings can influence market dynamics. Continuous buying by a whale reduces available trading supply, potentially driving prices higher if demand remains steady or increases. Their activity also signals market confidence, possibly attracting other investors and creating a herd effect. Despite the $40 million loss in October, the whale’s re-entry boosts optimism about a price rebound.

Key whale data

Total holdings: 371 million PI (~2-4% of circulating supply)

Estimated value: over $82 million

Recent purchases: 5.3 million PI in the past 9 days

October loss: over $40 million in paper losses

Strategic signal: continued accumulation despite losses indicates long-term confidence

OpenMind AI partnership and $100 million ecosystem fund

In recent weeks, Pi Network has taken significant steps to strengthen its infrastructure. One of the first investments from the $100 million ecosystem fund announced in May was in OpenMind, a company focused on AI and robotics. Pi users participated in a trial phase aimed at training AI models.

This partnership aims to elevate Pi Network from a simple crypto project to an AI computation platform. With over 35 million registered users and 350,000 active nodes, Pi’s idle computational resources can be repurposed for training and running AI models. Users contributing computing power earn PI tokens, while AI developers benefit from decentralized computing at lower costs.

Integrating AI with blockchain offers Pi Network a value proposition beyond payments and transactions. As AI demand surges, decentralized computing markets could become a major business opportunity. Tech giants like Google, Amazon, and Microsoft dominate cloud computing, but blockchain-driven decentralized networks may challenge this status quo. Pi’s collaboration with OpenMind positions it in this emerging sector, opening new avenues for long-term value.

The $100 million ecosystem fund underscores Pi’s focus on ecosystem development. Besides OpenMind, it will support other teams building applications on Pi. This funding aims to attract high-quality projects, enhancing network utility and value.

DeFi testnet and AI-KYC verification system

Pi Network has launched testnets for decentralized exchanges, liquidity providers, and automated market makers, with plans to deploy DeFi infrastructure on mainnet after testing. This indicates Pi’s ambition to build a comprehensive DeFi ecosystem, not just a payment network.

Decentralized exchanges (DEX) are core to DeFi. The upcoming PI DEX will enable users to trade PI and other assets without intermediaries. Liquidity providers can earn fees by depositing tokens into pools, while AMM mechanisms ensure instant trades. This infrastructure will expand use cases and token demand.

To accelerate identity verification, Pi has introduced an AI model that has successfully verified millions of KYC (Know Your Customer) credentials over recent months. This is a significant breakthrough, as traditional manual KYC processes are bottlenecks for mainnet migration. AI automates most verification steps, greatly improving efficiency.

The AI-KYC system uses machine learning algorithms to verify document authenticity, detect tampering, and cross-reference user data with public databases. This automation speeds up onboarding, reduces human error, and minimizes fraud risk. The verification of millions of users demonstrates the system’s production-level reliability.

Faster KYC enables more users to complete mainnet migration and start trading PI freely, gradually increasing circulating supply and market activity. While short-term supply increases may exert downward pressure, completing mainnet is essential for Pi’s long-term growth.

Technical analysis indicates falling wedge breakout and positive divergence

(Source: TradingView)

Technical analysis suggests PI’s price may be nearing the end of its downtrend. The daily chart shows a falling wedge pattern that has broken upward and retested successfully. Falling wedges are classic bullish reversal patterns, formed by converging trendlines slanting downward, with the upper and lower boundaries narrowing. An upward breakout from the wedge often signals the end of a downtrend and the start of a new rally.

PI’s falling wedge has broken out and retested, a strong bullish sign. The retest—where the price dips back near the breakout point—confirms the validity of the breakout. If the price holds support during the retest and moves higher, the breakout’s reliability increases. Additionally, positive divergence on RSI and PPO indicators suggests underlying bullish momentum.

Positive divergence occurs when the price makes new lows, but technical indicators fail to do so or start rising. This indicates weakening downward momentum and potential accumulation of buying interest. The dual positive divergence on RSI and PPO reinforces this view, hinting at a possible long-term bottom formation.

Analysts estimate that if PI continues to rise from $0.2240, it could reach the $0.50 resistance level, about 127% above current levels. This target is based on the measurement rule of the wedge pattern: the potential rise equals the height of the widest part of the wedge. $0.50 is also a key psychological and technical resistance; breaking through could open further upside.

However, a drop below $0.1493 would invalidate the bullish outlook. This level represents the wedge’s lowest point and a critical stop-loss. A breach below this support would negate the bullish pattern and suggest deeper correction. Investors should consider $0.1493 as a key risk management level.

Ecosystem development and price rebound create a positive feedback loop

The whale’s re-entry and strategic partnerships with innovative tech firms are crucial for boosting price optimism. These factors, combined with strengthening DeFi infrastructure and AI integration, lay the groundwork for potential price appreciation. As the network advances in technology and finance, it attracts attention and anticipation from the crypto community.

Pi Network is at a pivotal transition—shifting from mobile mining to a full blockchain ecosystem, from a simple payment network to an AI+DeFi platform. Successful implementation of these transformations could fundamentally alter market valuation. The whale’s increased holdings at this critical juncture likely reflect deep confidence in these long-term prospects.