After seven years of development, Tap To Earn Pi Network is finally set to launch its mainnet today at 8 AM UTC. However, fear is growing as Pi Coin has already plunged 55%, now trading around $30. This sudden drop has fueled speculation that the mainnet launch could lead to further bigger drop ahead.
Profit-Taking Opportunity for Early Miners
One of the biggest risks for Pi coin comes from early miners. These miners have accumulated Pi tokens at little to no cost, and are likely to view the mainnet launch as their first real opportunity to monetize their holdings.
For these individuals, selling a portion of their tokens could be a strategic move to lock in profits, especially if they believe the initial market price will be higher due to hype and speculation.
If a significant number of early miners decide to sell simultaneously, the market could experience a rapid increase in supply, potentially reducing the demand and this could lead to a sharp price decline.
Market Trends and Technical Indicators
Following the official announcement of the mainnet launch, the price of the Pi token jumped by almost 90%, climbing from $49 to $92. But this rise didn’t last long, as prices have fallen sharply since then.
Meanwhile, technical signs also show that Pi’s price is struggling. The token recently fell below a key support level at $40, which had earlier helped keep the price stable. Additionally, the Relative Strength Index (RSI), which measures whether a token is overbought or oversold, recently entered the overbought zone for Pi.
However, it quickly dropped in the last 24 hours. In the past, tokens that hit this zone often saw their prices reverse and fall. This could mean more price drops are coming for Pi.
The Airdrop Effect: A Common Trend?
History has shown that cryptocurrencies launched through airdrops often experience significant price declines. When tokens are distributed for free or at a low cost, many recipients rush to sell their holdings as soon as trading begins.
Pi Network could follow a similar pattern, with an oversupply of tokens hitting the market and driving prices lower.
Pi Price Hints Major Lose Ahead
As of now PI, I owe you (IOU), price has seen a sharp decline, now trading at $32 after dropping 57% in just 24 hours. This crash happened after the token failed to stay above the $50 support level.
With the upcoming mainnet launch, uncertainty is growing, and Pi’s price could face more downward pressure. While it is still holding above $30, breaking below this level might trigger a further drop to $17.
If that happens, investors who have been holding Pi in recent weeks could face even bigger losses.
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