The click of the Earn PI was a hot topic in the encryption space, often compared to bitcoin due to the simple mining style. However, despite the excitement, the increasing concerns that the price of the PI may face a significant decrease after the long -awaited launch. Here are the 5 most important reasons why the price of the PI has decreased.
Delay in the launch of Mainnet
One of the largest concerns surrounding the PI network is the frequent delay in the launch of Mainnet. Initially, the launch of the Mainnet and KYC launch was expected by 2024, but it is now pushed to January 2025.
These delays have thwarted investors and have caused a 50 % decrease in the PI price since November. If there is more delay, we may see more people who sell their coins, which may lead to low price.
Achieving profit can lead to sales operations
Another main reason behind the low price of the PI network is the possibility of profit. Many of the first mines are waiting for years to sell their PI coins. After losing the Crypto Bull 2021 and supporting many delays, the first adoption may decide to sell their symbols as soon as they are trading.
This may dump the market with coins and reduce the price, especially if there is not enough demand to accommodate the additional supply.
Air effect
History has shown that many cryptocurrencies -based currencies suffer from a significant decrease in prices after launch.
Modern examples include berachain, which decreased by 50-60 % after AirDrop, as well as symbols such as hamster kombat (HMST), Wormhole and ZKsync, which witnessed similar declines. PI may follow this style if the market is not in a strong upward direction.
The effect of seasonal on the price of PI
Timing also plays a role in market movements. If the Mainnet launch of the PI network occurs at the end of the first quarter, historical data indicates that it is not the best time for many cryptocurrencies.
In the end, the third quarter tends to be a slow period, and the PI price may struggle if it is not launched during the upper market.
Weak technical indicators indicate the signs of Habbiyah
Technically, PI price plans indicate a possible problem in the future. The code has already decreased to less than the main support levels of $ 50 and $ 55, both of which were previously carrying strong floors.
In addition, less than its moving averages decreased for 50 days and 100 days, indicating a declining direction.
However, analysts warn that the next main support level is about $ 39, and if the distinctive code decreases below, it may face more losses.
