After seven years of growth, Faucet To Earn Pi Community is lastly set to launch its mainnet at present at 8 AM UTC. Nevertheless, worry is rising as Pi Coin has already plunged 55%, now buying and selling round $30. This sudden drop has fueled hypothesis that the mainnet launch may result in additional greater drop forward.
Revenue-Taking Alternative for Early Miners
One of many largest dangers for Pi coin comes from early miners. These miners have gathered Pi tokens at little to no price, and are more likely to view the mainnet launch as their first actual alternative to monetize their holdings.
For these people, promoting a portion of their tokens may very well be a strategic transfer to lock in income, particularly in the event that they imagine the preliminary market value can be larger as a result of hype and hypothesis.
If a big variety of early miners determine to promote concurrently, the market may expertise a speedy improve in provide, probably decreasing the demand and this might result in a pointy value decline.
Market Developments and Technical Indicators
Following the official announcement of the mainnet launch, the value of the Pi token jumped by nearly 90%, climbing from $49 to $92. However this rise didn’t final lengthy, as costs have fallen sharply since then.
In the meantime, technical indicators additionally present that Pi’s value is struggling. The token not too long ago fell beneath a key assist stage at $40, which had earlier helped hold the value secure. Moreover, the Relative Power Index (RSI), which measures whether or not a token is overbought or oversold, not too long ago entered the overbought zone for Pi.
Nevertheless, it rapidly dropped within the final 24 hours. Previously, tokens that hit this zone usually noticed their costs reverse and fall. This might imply extra value drops are coming for Pi.
The Airdrop Impact: A Widespread Development?
Historical past has proven that cryptocurrencies launched via airdrops usually expertise important value declines. When tokens are distributed free of charge or at a low price, many recipients rush to promote their holdings as quickly as buying and selling begins.
Pi Community may observe an identical sample, with an oversupply of tokens hitting the market and driving costs decrease.
Pi Worth Hints Main Lose Forward
As of now PI, I owe you (IOU), value has seen a pointy decline, now trading at $32 after dropping 57% in simply 24 hours. This crash occurred after the token failed to remain above the $50 assist stage.
With the upcoming mainnet launch, uncertainty is rising, and Pi’s value may face extra downward strain. Whereas it’s nonetheless holding above $30, breaking beneath this stage may set off an extra drop to $17.
If that occurs, traders who’ve been holding Pi in latest weeks may face even greater losses.