PYTH price rallied over 100% after disclosing a significant partnership with the U.S. government. Simultaneously, whales have started accumulating the token. Will this rally continue, or has it lost steam?
Summary
- PYTH price shot up over 100% as the U.S. government selected it as an oracle partner to verify GDP data.
- The token’s price has broken above a descending trendline it had been trading under since February.
According to data from crypto.news, Pyth Network (PYTH) soared 118% to an intraday high of $0.243 on Friday morning, Asian time, before settling at $0.227 as of press time. At this price, it stands 167% higher than its year-to-date low.
The surge occurred in a high-volume trading environment. Trading volume for PYTH token was up nearly 8,600% over the past 24 hours, which indicates strong demand from traders helped fuel its rally today.
The token also attracted strong demand from derivatives traders. Notably, open interest surged to an all-time high of $188.34 million, significantly higher than the approximately $40 million recorded the previous day. This, combined with a long/short ratio above 1, indicates that a majority of traders are positioning for further upside, reinforcing the bullish sentiment behind the rally.
As such, the market cap of Pyth Network has ballooned to over $1.3 billion, entering the top 100 crypto assets by market cap as per CoinGecko.
PYTH’s price surged after the project’s team announced that the U.S. Department of Commerce had chosen the network as one of the oracle partners to help validate and publish economic data directly on the blockchain.
Notably, this also drove renewed interest from whale investors. According to data from Nansen, the balance of PYTH tokens held by whale wallets rose 14.5% over the past 7 days, increasing from 42.97 million to 49.21 million today.
Another factor that supported the token’s gains today is the drop in balances held on exchanges. According to Nansen data, the combined balances across all exchanges currently stand at 908.75 million, down 8% compared to seven days ago.
Such a drop in exchange balances suggests that investors may be moving tokens off exchanges, reducing immediate selling pressure. With fewer tokens available for trading, this is often seen as a bullish signal, indicating growing holder confidence and a potential for continued upward price movement.
The confluence of these bullish factors could continue to improve investor sentiment, potentially leading to further price appreciation in the short term.
On the daily chart, PYTH has decisively broken out above a descending trendline that had been in place since early February, characterized by a series of lower highs and lower lows. This breakout marks a shift in market structure and suggests a potential trend reversal.
Following the breakout, the price has moved above the 23.6% Fibonacci retracement level at $0.192, reinforcing the bullish outlook.
The token is now trading above all major simple moving averages, including the 50-day and 200-day SMAs, which is typically interpreted as a strong bullish signal. This alignment suggests that short- and long-term momentum are now favoring the bulls.
Additionally, the Supertrend indicator has turned green and shifted below the price level, providing further confirmation of a buy signal.
Based on this setup, the next immediate upside target lies at $0.26. A decisive break above this level could open the door for a move toward $0.31, which aligns with the 50% Fibonacci retracement level and may serve as the next key resistance zone.
On the contrary, if the token fails to maintain support above $0.19, it could retreat toward $0.10, a level that previously acted as strong support.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
