Faucet-to-earn Pi Community has been a scorching subject within the crypto house, typically in comparison with Bitcoin as a result of its easy mining mannequin. Nonetheless, regardless of the thrill, considerations are rising that the Pi coin’s worth might face a major drop after its long-awaited mainnet launch. Listed below are the High 5 the reason why the Pi coin worth could fall.
Delays within the Mainnet Launch
One of many greatest considerations surrounding Pi Community is the repeated delays in launching its mainnet. Initially, the mainnet launch and KYC course of had been anticipated to occur by 2024, however now it’s pushed to January 2025.
These delays have annoyed buyers and brought about Pi’s worth to drop by 50% since November. If there are extra delays, we’d see much more individuals promoting their cash, which might drive the worth down additional.
Revenue-Taking May Result in a Promote-Off
One other main motive why Pi Community’s worth may drop is the probability of profit-taking. Many early miners have been ready for years to promote their Pi cash. After lacking the 2021 crypto bull run and enduring a number of delays, early adopters could determine to promote their tokens as quickly as they turn out to be tradable.
This might flood the market with cash and decrease the worth, particularly if there isn’t sufficient demand to soak up the additional provide.
Airdrop Impact
Historical past has proven that many tap-to-earn and airdrop-based cryptocurrencies expertise a major worth decline post-launch.
Current examples embody Berachain, which fell by 50-60% after its airdrop, in addition to tokens like Hamster Kombat (HMST), Wormhole, and ZkSync, which noticed comparable declines. Pi may observe this sample if the market isn’t in a powerful uptrend.
Seasonality Impression Pi’s Value
Timing additionally performs a job in market actions. If Pi Community’s mainnet launch occurs on the finish of the primary quarter, historic information means that isn’t the very best time for a lot of cryptocurrencies.
Ultimately, the third quarter tends to be a gradual interval, and Pi’s worth might wrestle if it doesn’t launch throughout a bullish market.
Weak Technical Indicators Trace Bearish Indicators
From a technical standpoint, Pi’s worth charts point out potential bother forward. The token has already dropped under key help ranges of $50 and $55, each of which beforehand held sturdy worth flooring.
Moreover, it has fallen under its 50-day and 100-day transferring averages, suggesting a bearish pattern.
Nonetheless, analysts warn that the following main help stage is round $39, and if the token drops under that, it might face even larger losses.