The price of the PI network has lost momentum and erasing billions of value in the past few weeks. This incident is likely to be due to the ongoing concerns about mitigation, as more than 1.6 billion coins will be opened this year. As happened with bitcoin and other altcoins. So, how will the burning of PI currency affect the price?
Burning the coin will be a catalyst
The distinctive symbol of the next PI network contributed to the continuous Pi Price Crash. Data shows It will be burned more than 118 million icons this month. More than 1.6 billion icons will be opened at a value of $ 1.4 billion, in the next 12 months. The average monthly openings will be 136 million icons.
PI will have more cancellation in the future. according to CoinmarketcapIt has a circulating supply of 6.84 billion symbols for the maximum supply of 100 billion.
This distinctive symbol is a significant drop in an encrypted currency because it increases the number in the blood circulation and relieves those present. Also, encryption prices often decrease before opening a large symbol.
Crypting projects, this disclosure is corresponding to the implementation of burns. Symbolic burning is the position in which the distinctive codes of encryption are transferred to a dead address, where they cannot be reached. The network helps by removing the number of symbols circulated.
Burning the PI will help increase its price by reducing the number of symbols circulating. While such future burning has not been confirmed, there are increasing possibilities that this happens in some way.
One of the methods is to burn all the symbols by the pioneers who failed to conduct KYC and deport them to Mainnet. These symbols can be large because about 12 million pioneers conducted immigration. At its peak, the Pi Network had more than 50 million miners.
Another approach will be to burn the graphics that the network will generate over time. Pi Network had about 100 ecosystem applications during Pi Mainnet Launchand The number that may continue to grow, fees made of these transactions can be burned.
Technical analysis of the price of PI network
Pi Network Core has not confirmed a possible symbolic burning, but the market participants believe it is just a matter of time. Such a coin, along with the central and decentralized exchange lists, will be very potential for PI. The possibilities are that they will jump and reach the value of PI at $ 3.14.
Before this happens, there are signs that the currency will remain under pressure for a while. The four -hour graph shows that the price of the PI coin has formed a head pattern and shoulder. This style consists of a head, shoulders, and neckline. I have already moved below the neckline at $ 1.2373.
The price of the PI is also a small pattern of flag, which includes a vertical line and a similar triangle. Therefore, the currency may decrease and move below support at one dollar soon. Refreshing over the right shoulder at $ 1.8 will indicate more gains because it will nullify the decline PI Coin expectations.
Related questions (common questions)
It is unclear whether the PI team will launch a PI burning mechanism. However, with concerns about mitigation, there is a possibility that the burning will start.
Providing a budget burning mechanism will be a bullish stimulus for the PI network because it will reduce concerns about future dilutions.
Short -term expectations for a declining PI value because they formed the head of the graph and the shoulders.
Crespos
CRISPUS is an experienced financial analyst in CoingApe with over 12 years of experience. It focuses on Bitcoin and other altcoins, which covers the intersection of news and analysis. His visions were shown on famous platforms such as banklestimes, Coinjournal, Hypeindex, Seekingalpha, Forbes, Investingcube, Investing.com and MoneytransFers.com.
Responsibility: Is market research before investing in encrypted currencies? The author or post does not bear any responsibility for your personal financial loss.
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