- The Pi Network faces significant risks, including repeated mainnet launch delays, a declining cryptocurrency market, and weak technical indicators, all contributing to its recent price drop.
- Unless market conditions improve and the project achieves key milestones, the Pi coin could face further declines.
The Pi Network, once a promising cryptocurrency project, has recently faced significant headwinds. The Pi coin’s value has plummeted, with its price reaching the lowest levels since October 2024. As the crypto market remains volatile, here are three critical risks that could further impact Pi Network’s price trajectory.
1. Mainnet Launch Delays Cast Doubts
One of the most pressing risks is the repeated delays in the Pi Network’s mainnet launch. Initially, the developers planned to complete the Know Your Customer (KYC) migration by the end of 2024, aiming for a 10 million pioneer milestone. However, this timeline has been pushed back multiple times, with the target now set for January 31, 2025.
While the network recently reported crossing 9 million pioneers, the delays have eroded investor confidence, leading to a sharp 50% drop in Pi coin’s value since November. If the mainnet launch is delayed further, it could trigger another wave of sell-offs, sending the price tumbling even more.
2. Broader Crypto Market Challenges
The ongoing cryptocurrency crash presents another significant hurdle. The Pi Network’s mainnet listing is contingent upon a supportive external environment, including a stable crypto market. However, the market’s downturn, driven by regulatory uncertainties and waning investor sentiment, creates a less-than-ideal backdrop for the network’s progress.
Historically, new tokens like Pi have struggled in bearish markets. Tokens launched during such times often see significant price drops post-listing, as early holders rush to sell. If this trend continues, Pi Network’s valuation could suffer further declines upon its mainnet launch.
3. Weak Technical Indicators Signal Further Declines
From a technical perspective, the Pi coin’s price chart reveals troubling signs. The token has broken below critical support levels, including $43.31 and $49.80, both of which previously acted as strong price floors. Additionally, the coin has dipped under its 50-day and 100-day moving averages, signaling a bearish trend.
Unless Pi’s price can reclaim the $49 resistance level, the bearish momentum is likely to persist, with the next significant support level at $30. A move below this could spell even more trouble for the cryptocurrency.
Conclusion: Caution in a Volatile Market
The Pi Network faces an uphill battle, with delays, market instability, and weak technicals posing significant challenges. While the project still holds potential, pioneers and investors should tread carefully, keeping a close eye on developments around the mainnet launch and broader market conditions.
