Pyth Network (PYTH) Aims for $0.30 After 100% Surge with Whale Activity Increasing

Pyth Network’s token (PYTH) experienced a remarkable 100% increase following an announcement of a significant partnership with the U.S. government. This surge has also drawn the attention of whale investors, whose accumulation could potentially sustain the price momentum. As Pyth aims for a target of $0.30, the question remains: will the rally continue?

Key Takeaways

Pyth Network's price rose 118% to $0.243, driven by a partnership with the U.S. government.
Whale wallets increased their holdings of PYTH tokens by 14.5%.
Trading volume surged by nearly 8,600%, indicating strong demand.
The market cap has reached over $1.3 billion, placing Pyth in the top 100 cryptocurrencies.
A breakout above key trendlines suggests a bullish shift in market conditions.

Pyth Network (PYTH) price targets $0.30 after 100% rally as whales step in

The Recent Rally and Market Dynamics

Pyth Network (PYTH) saw its value soar by more than 100%, reaching an intraday high of $0.243 on Friday morning (Asian time) before settling at around $0.227. This marks a significant increase of 167% from its lowest point this year.

This impressive surge occurred amidst high trading volumes, with PYTH's trading volume climbing nearly 8,600% within a 24-hour period. Such activity signals strong demand from traders, contributing to the token's rally.

In addition to retail trader interest, derivatives traders are also showing significant interest. The open interest for this token reached a record-breaking $188.34 million, a stark increase from about $40 million just a day earlier. The ratio of long to short positions has exceeded 1, indicating that many traders are betting on continued price increases, which enhances the overall bullish sentiment.

As a result, Pyth Network's market capitalization has skyrocketed to over $1.3 billion, earning it a place among the top 100 cryptocurrencies according to CoinGecko.

Partnership with the U.S. Department of Commerce

The surge in PYTH's price is largely attributed to the project's team revealing that the U.S. Department of Commerce selected the network as an oracle partner to validate and publish economic data on the blockchain. This announcement has sparked renewed engagement from whale investors.

Analysis from Nansen indicates that whale wallets increased their holdings from 42.97 million PYTH tokens to 49.21 million within the past week, marking a 14.5% rise.

Furthermore, a decrease in tokens held on exchange platforms has also been observed. Data from Nansen shows that combined exchange balances have fallen to 908.75 million tokens, down 8% from the previous week. This decline may suggest that investors are pulling tokens off exchanges, which often reduces immediate selling pressure and is generally viewed as a bullish sign.

Technical Analysis and Potential Price Movement

The combination of these factors appears to enhance investor confidence and may lead to further price increases. On the daily chart, PYTH has broken above a descending trendline established since February, characterized by consistent lower highs and lower lows. This breakout hints at a potential trend reversal and a shift in market dynamics.

After this breakout, the price has climbed above the 23.6% Fibonacci retracement level of $0.192, reinforcing a positive outlook. Currently, the token is trading above major simple moving averages (SMAs), including the 50-day and 200-day SMAs, which is often interpreted as a strong bullish signal.

Additionally, the Supertrend indicator has changed to green, providing further confirmation of a buy signal.

Given this technical setup, the next immediate price target for PYTH is $0.26. Should it break above this level decisively, it may move towards $0.31, corresponding with the 50% Fibonacci retracement level, marking it as a significant resistance zone.

Conversely, if the token fails to maintain support above $0.19, it may retract to $0.10, a level that previously supported the price.

Important Note

This article is not intended as investment advice. The information and materials contained herein are for educational purposes only.