Pyth Price came up more than 100% after announcing a considerable partnership with the US government. At the same time, whales started collecting token. Will this rally continue, or has it lost steam?
Summary
- Pyth Price shot up more than 100% when the US government selected it as an Oracle partner to verify GDP data.
- The price of the token is broken above a falling trendline where it has been traded since February.
According to data from crypto.news, Pyth Network (PYTH) rose on Friday morning, Asian time, 118% to an intraday height of $ 0.243, before he settled at $ 0.227 from the pressure. At this price it is 167% higher than its low to date.
The increase took place in a trade environment with a large volume. The trading volume for Pyth -Tokken rose nearly 8,600%in the last 24 hours, indicating that a strong question from traders has helped his rally today.
The Token also attracted a strong question from derivatives traders. It is remarkable that open interest rose to a record high of $ 188.34 million, considerably higher than the approximately $ 40 million that was registered the previous day. This, combined with a long/short ratio above 1, indicates that a majority of traders turn positioning for further upside down, which strengthens the bullish sentiment behind the rally.
As such, the market capitalization of Pyth Network has risen at more than $ 1.3 billion, with the top 100 crypto assets per market capital being introduced according to Coetecko.
The PYTH prize increased after the project of the project had announced that the US Department of Trade had chosen the network as one of the Oracle Partners to validate and publish economic data directly on the blockchain.
In particular, this also brought renewed interest from whale investors. According to facts Van Nansen rose the balance of Pyth -Tokens of Walvisportfeuilles in the last 7 days by 14.5% and today increased from 42.97 million to 49.21 million.
Another factor that has supported the profit of Token today is the fall in the balances at fairs. According to Nansen data, the combined balances in all fairs are currently 908.75 million, with 8% compared to seven days ago.
Such a fall in exchange balance suggests that investors may move tokens of exchanges, reducing immediate sales pressure. With fewer tokens available for trade, this is often seen as a bullish signal, which indicates the growing trust of the holder and a potential for continuous upward price movement.
The confluence of these bullish factors could continue to improve the sentiment of investors, which may lead to further price valuation in the short term.
On the daily graph, Pyth certainly broken over a falling trendline that was present since the beginning of February, characterized by a series of lower highlights and lower lows. This outbreak marks a shift in the market structure and suggests a potential trend inch.
After the outbreak, the price above the 23.6% Fibonacci retracement level has moved to $ 0.192, which enhances the bullish prospects.
The Token now acts above all important simple advancing averages, including the 50-day and 200 days of SMAs, which is usually interpreted as a strong bullish signal. This coordination suggests that the momentum has been favored in the short and long term now that the bulls have favored.
Moreover, the Supertrend indicator has become green and shifted below the price level, which offers a further confirmation of a purchase signal.
Based on this setup, the next immediate upward target is at $ 0.26. A decisive break above this level could open the door for a movement to $ 0.31, which matches the 50% Fibonacci retracement level and can serve as the next key resistance zone.
On the contrary, if token does not maintain support above $ 0.19, it could withdraw to $ 0.10, a level that previously acted as strong support.
Publication: This article does not represent investment advice. The content and materials on this page are only for educational purposes.
