PYTH Price Surges: 80% Rally Possible Despite Volatility
PYTH Eyes Significant Gains Amid Market Fluctuations
PYTH price experienced a surge of over 100% in the last 24 hours, spurred by the US Commerce Department's decision to distribute GDP data on blockchains like Bitcoin, Ethereum, and Solana, with Pyth Network providing on-chain data verification.
Despite this rally, PYTH, currently priced at $0.223, remains below its all-time high of $1.20, suggesting potential for further appreciation. Even with year-to-date losses, on-chain metrics and technical indicators suggest a possible climb, although volatility remains a key factor.
Buyers Accumulate as Some Whales Trim Holdings
On-chain data reveals a mixed picture. While some larger holders reduced their positions by approximately 2.86% in the last 24 hours, other buyers stepped in to fill the void.
Key observations include:
- Exchange reserves decreased by 77.2 million PYTH, valued at $17.2 million, indicating accumulation outside of exchanges and reduced selling pressure.
- The top 100 addresses increased their holdings by 24.1 million PYTH, worth around $5.37 million.
- Overall, buyers absorbed over $22 million worth of PYTH tokens, demonstrating strong demand despite profit-taking by some holders.
This divergence in sentiment reflects differing views on the US government data announcement, with some traders viewing it as short-term hype, while others see it as a long-term adoption indicator. Currently, the latter group appears to be dominating.
Technical Analysis: Megaphone Pattern and EMA Crossover
The daily PYTH price chart shows a megaphone pattern, characterized by widening highs and lows, indicating heightened volatility and potential for sharp price swings prior to a breakout.
Analyzing moving averages reveals a potentially bullish signal. The 50-day Exponential Moving Average (EMA) is approaching a crossover above the 100-day EMA. This "golden crossover" could act as a bullish catalyst, potentially driving PYTH to break out of the megaphone pattern despite the inherent volatility.
Key Price Levels to Watch
The 4-hour chart shows that the Bull Bear Power (BBP) indicator remains positive, signaling that buying pressure outweighs selling pressure. This suggests that bulls maintain control, even amidst intraday pullbacks.
Critical support levels are identified at $0.1935 and $0.1730. A breach below these levels could invalidate the bullish outlook. Conversely, a breakout above $0.2622 could pave the way for a move towards $0.40, representing a potential 80% rally from the current price of $0.223.