Pi Network price crashed at the start of the week as Bitcoin and most altcoins plunged. It dropped by almost 20% on its worst day since November. Pi coin faces substantial risks ahead that could push it to more downsides. The most notable ones are a potential mainnet launch delay, the ongoing crypto crash, and its weak technicals.
Pi Network Price May Drop If The Mainnet Is Delayed
The biggest risk that the Pi coin faces is a potential mainnet delay. Indeed, the token has already fallen by over 50% since the developers postponed the grace period for the KYC migration in November. They moved it to December 31 and then pushed it again to January 31.
The justification for this mainnet launch delay is that many pioneers are yet to migrate their Pi coins to the mainnet. In the December statement, they noted that they were 2 million pioneers short of the 10 million target. Just recently, they said they had already crossed the 9 million mark, meaning the 10 million target may be achieved by January 31st.
Pi Network 9 Million Users
The other potential risk to the Pi Network price is the continuation of the crypto crash. As part of the third mainnet migration criterion, the developers noted that the listing will happen if the external environment is supportive.
The two most notable external factors are the performance of cryptocurrencies and regulations. With the Donald Trump administration coming up, there are signs that the regulatory environment will be good.
However, the developers may delay the Pi Network listing if cryptocurrencies are plunging. This is similar to companies avoiding launching IPOs when the stock market is falling.
Further, most tap-to-earn tokens like Hamster Kombat, DOGS, and Catizen prices have crashed after their airdrops. That could be a sign that Pi coin price will also drop after the mainnet launch as many pioneers sell.
Pi Coin Price Technical Analysis
The third major risk that the Pi price could fall is that it has weak technicals. It has now dropped below the important support at $43.31, its lowest swing in December and November last year. Moving below that level is a sign that bears are gaining control for now.
Pi Network price has moved below the 50-day and 100-day moving averages and the key support level at $49.80, its highest level on July 14. Therefore, by breaking below the key support at $43, it means that bears have prevailed and that it will continue falling, potentially to the support at $30.
Pi Network Price Chart
A move above the key resistance level at $49 will cancel the bearish view and point to more gains, potentially to the psychological point at $60.
The post 3 Potential Risks For The Pi Network Price appeared first on CoinGape.
