The post Top 5 Reasons Why Pi Coin Price Plunge After Mainnet Launch? appeared first on Coinpedia Fintech News
Tap-to-earn Pi Network has been a hot topic in the crypto space, often compared to Bitcoin due to its simple mining model. However, despite the excitement, concerns are rising that the Pi coin’s price could face a significant drop after its long-awaited mainnet launch. Here are the Top 5 reasons why the Pi coin price may fall.
Delays in the Mainnet Launch
One of the biggest concerns surrounding Pi Network is the repeated delays in launching its mainnet. Initially, the mainnet launch and KYC process were expected to happen by 2024, but now it’s pushed to January 2025.
These delays have frustrated investors and caused Pi’s price to drop by 50% since November. If there are more delays, we might see even more people selling their coins, which could drive the price down further.
Profit-Taking Could Lead to a Sell-Off
Another major reason why Pi Network’s price might drop is the likelihood of profit-taking. Many early miners have been waiting for years to sell their Pi coins. After missing the 2021 crypto bull run and enduring multiple delays, early adopters may decide to sell their tokens as soon as they become tradable.
This could flood the market with coins and lower the price, especially if there isn’t enough demand to absorb the extra supply.
Airdrop Effect
History has shown that many tap-to-earn and airdrop-based cryptocurrencies experience a significant price decline post-launch.
Recent examples include Berachain, which fell by 50-60% after its airdrop, as well as tokens like Hamster Kombat (HMST), Wormhole, and ZkSync, which saw similar declines. Pi might follow this pattern if the market isn’t in a strong uptrend.
Seasonality Impact Pi’s Price
Timing also plays a role in market movements. If Pi Network’s mainnet launch happens at the end of the first quarter, historical data suggests that isn’t the best time for many cryptocurrencies.
Eventually, the third quarter tends to be a slow period, and Pi’s price could struggle if it doesn’t launch during a bullish market.
Weak Technical Indicators Hint Bearish Signs
From a technical standpoint, Pi’s price charts indicate potential trouble ahead. The token has already dropped below key support levels of $50 and $55, both of which previously held strong price floors.
Additionally, it has fallen below its 50-day and 100-day moving averages, suggesting a bearish trend.
However, analysts warn that the next major support level is around $39, and if the token drops below that, it could face even greater losses.
