The PYTH token faced a bearish structure as it dropped below $0.135, signaling a need for stronger buying pressure to prevent further price declines. Despite a 5.6% increase in the past 24 hours, the Trading Volume was 15% lower, indicating a neutral sentiment among traders.
PYTH witnessed a significant rally on May 6th, soaring from $0.128 to $0.211, marking a 64% gain in just three days. However, the surge in trading volume on the final day turned out to be a blow-off top, leading to a sharp retracement back to its breakout base. The On-Balance Volume (OBV) spiked during the rally but hit a new low during the retracement. Additionally, the Moving Average Convergence Divergence (MACD) formed a bearish crossover, dipping below the zero line.
While the OBV showed signs of recovery, the overall trend remained bearish. The drop below $0.135 was a bearish signal, suggesting a potential minor bounce followed by further losses in the near future.
The Liquidation Heatmap indicated a bounce zone between $0.137 and $0.15, likely to see a 10% price increase within the week. However, the bears had already wiped out the gains from the previous week, maintaining control of the momentum. A breakthrough above $0.16 would indicate a shift in favor of the bulls, but until then, traders should exercise caution before going long.
In conclusion, while a short-term bounce could be expected, the overall trend favored the bears. It was crucial for PYTH to surpass key resistance levels to reverse the current bearish sentiment. This information is for educational purposes only and does not constitute financial advice.
Next: Bitcoin’s realized cap adds $3B – Here’s why BTC’s rally isn’t over