Pi coin price crashes 55% ahead of mainnet launch—Is a bigger drop coming?

Pi Coin from Pi Network: After seven years in development, Pi Network is poised to launch its long-awaited mainnet today at 8 AM UTC, or around 1.30 pm India time.

However, the excitement surrounding the event is being overshadowed by growing concerns over the cryptocurrency’s price volatility. Pi Coin, which recently surged to $92, has since plummeted by 55%, now trading around $30. Analysts fear that the mainnet launch could trigger an even steeper decline.

Early Miners Eye Profits

One of the primary risks to Pi Coin’s stability comes from early adopters who have accumulated tokens at little to no cost. With the mainnet finally providing a real market for transactions, these miners are expected to offload their holdings in an attempt to cash in. If a significant number of them choose to sell simultaneously, the market could be flooded with supply, pushing prices down even further.

Technical Signals Flash Red

Pi Coin’s recent price action has raised further alarms. The token fell below the critical $40 support level, which had previously served as a price floor. Additionally, the Relative Strength Index (RSI) indicated that Pi was in overbought territory before a sharp decline in the last 24 hours. Historically, such patterns have preceded further downturns in price.

The Airdrop Effect: A Warning Sign?

Cryptocurrencies launched through airdrops often face immediate sell-offs as recipients rush to liquidate their free or low-cost holdings. If Pi Network follows this trend, a surge in supply without matching demand could exacerbate its price decline.

More Losses Ahead?

Currently, Pi’s IOU price has tumbled 57% in just 24 hours, now hovering at $32. With uncertainty looming ahead of the mainnet launch, a break below the $30 mark could send the token spiraling further down to $17.

For investors who have held onto Pi in anticipation of its market debut, the coming days could determine whether the cryptocurrency stabilizes—or faces a deeper crash.

Analysts say three key risks one should watch out for.

1. Early Miners May Cash Out, Flooding the Market

Pi Network has spent years building a vast base of early adopters who mined Pi tokens at virtually no cost. Now, with the mainnet finally offering real liquidity, many of these early miners may rush to sell their holdings, hoping to lock in profits. If this mass sell-off happens, the sudden spike in supply could overwhelm demand, accelerating price declines.

2. Airdrop Tokens Often Plummet Post-Launch

History has shown that cryptocurrencies distributed through airdrops or free mining often face immediate sell-offs once trading begins. Investors who received Pi for free may have little incentive to hold onto it, leading to heavy selling pressure. Many past airdrop-based tokens have suffered steep declines, and Pi Network could follow the same pattern.

3. Technical Weakness and Market Uncertainty

Pi Coin has already struggled to maintain key price levels, plunging by 55% to around $30. Technical indicators suggest that the coin is in a fragile state, with resistance at higher levels and a lack of strong support. If sentiment turns bearish post-launch, Pi could slide further, with analysts warning that a drop below $30 might trigger a collapse to $17 or lower.