After seven years of development, the Tap To Earn Pi Network is finally preparing to launch its mainnet at 8am UTC today. However, concerns are growing as Pi Coin has dropped 55%, currently trading around $30. This sudden drop has sparked speculation that the mainnet launch could lead to an even greater decline in the coming period.
Opportunity for Initial Miners to Profit
One of the biggest risks to Pi Coin comes from the initial miners. These miners have accumulated Pi Tokens at almost no cost, and they may see the mainnet launch as the first real opportunity to realize profits from their assets.
Selling a portion of the Tokens may be a strategic move to lock in profits, especially if they believe the initial market price will be higher due to enthusiasm and speculation.
If a large number of initial miners decide to sell simultaneously, the market could experience a sudden increase in supply, leading to decreased demand and potentially a sharp price decline.
Market Trends and Technical Indicators
After the official announcement of the mainnet launch, the price of Pi Token jumped nearly 90%, from $49 to $92. However, this price increase did not last, as the price has since dropped significantly.
Meanwhile, technical signals also suggest that the price of Pi is facing difficulties. The Token has recently fallen below the critical support level of $40, which had previously helped stabilize the price. Additionally, the Relative Strength Index (RSI), which assesses whether a Token is overbought or oversold, has recently entered the overbought zone for Pi.
However, this indicator has quickly declined in the past 24 hours. In the past, Tokens reaching this zone have often seen prices reverse and decline. This may suggest that further price declines are awaiting Pi.
Airdrop Effect: A Common Trend?
History has shown that cryptocurrencies launched through Airdrop often experience significant price declines. When Tokens are distributed for free or at a low cost, many recipients quickly sell their assets as soon as trading begins.
The Pi Network may follow a similar model, with an oversupply of Tokens entering the market and pushing the price down further.
Suggesting a Significant Price Decline for Pi
Currently, the price of PI IOU has witnessed a sharp decline, trading at around $32 after dropping 57% in just 24 hours. This drop occurred after the Token failed to maintain the $50 support level.
With the upcoming mainnet launch, uncertainty is increasing, and the price of Pi may face further downward pressure. Although it still holds above $30, a breach below this level could lead to an additional decline of up to $17.
If this were to happen, investors who have held Pi in recent weeks may face even greater losses.Pi Network Mainnet Boom – Pi coin price drops sharply?
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After seven years of development, the Tap To Earn Pi Network is finally preparing to launch its mainnet at 8am UTC today. However, concerns are growing as Pi Coin has dropped 55%, currently trading around $30. This sudden drop has sparked speculation that the mainnet launch could lead to an even greater decline in the coming period.
Opportunity for Initial Miners to Profit
One of the biggest risks to Pi Coin comes from the initial miners. These miners have accumulated Pi Tokens at almost no cost, and they may see the mainnet launch as the first real opportunity to realize profits from their assets.
Selling a portion of the Tokens may be a strategic move to lock in profits, especially if they believe the initial market price will be higher due to enthusiasm and speculation.
If a large number of initial miners decide to sell simultaneously, the market could experience a sudden increase in supply, leading to decreased demand and potentially a sharp price decline.
Market Trends and Technical Indicators
After the official announcement of the mainnet launch, the price of Pi Token jumped nearly 90%, from $49 to $92. However, this price increase did not last, as the price has since dropped significantly.
Meanwhile, technical signals also suggest that the price of Pi is facing difficulties. The Token has recently fallen below the critical support level of $40, which had previously helped stabilize the price. Additionally, the Relative Strength Index (RSI), which assesses whether a Token is overbought or oversold, has recently entered the overbought zone for Pi.
However, this indicator has quickly declined in the past 24 hours. In the past, Tokens reaching this zone have often seen prices reverse and decline. This may suggest that further price declines are awaiting Pi.
Airdrop Effect: A Common Trend?
History has shown that cryptocurrencies launched through Airdrop often experience significant price declines. When Tokens are distributed for free or at a low cost, many recipients quickly sell their assets as soon as trading begins.
The Pi Network may follow a similar model, with an oversupply of Tokens entering the market and pushing the price down further.
Suggesting a Significant Price Decline for Pi
Currently, the price of PI IOU has witnessed a sharp decline, trading at around $32 after dropping 57% in just 24 hours. This drop occurred after the Token failed to maintain the $50 support level.
With the upcoming mainnet launch, uncertainty is increasing, and the price of Pi may face further downward pressure. Although it still holds above $30, a breach below this level could lead to an additional decline of up to $17.
If this were to happen, investors who have held Pi in recent weeks may face even greater losses.Sector:
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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