Pyth Network: Will PYTH’s 12% gains mark the start of a bigger rally?

Pyth Network [PYTH] continues to surge a few days after partnering with the U.S. Commerce Department to release economic data on-chain. PYTH is up more than 12% in the past 24 hours, recovering all its gains lost during the retest of its breakout.

On-chain data and technical outlook suggest that this PYTH trend may be at its initial stage. Is the statement true?

PYTH’s bullish momentum returns

Looking at the charts, PYTH is trading above a descending trend channel following a successful retest at the $0.045 zone. This pattern has existed since the beginning of 2026 and could be the bottom of a bearish market structure.

However, for a continuation of a bigger rally, bulls must break higher levels, with the most immediate being $0.0576.

Interestingly, the SMI reading is back to the neutral level, indicating a return of bullish momentum. The RSI divergence reinforces this observation, showing an overbought reading of 70.

Since the double-digit gains follow a retest of an eight-month consolidation breakout, it could suggest the rally may be in its early stages.

The altcoin’s short-term supply zone that could challenge bulls is at $0.060, $0.070, and $0.080 at the origin of the channel. They define PYTH‘s downside risk.

But are market participants also showing that these gains could be the beginning of a bigger rally?

How are whales vs. retailers positioned?

More data from CryptoQuant showed that whales had been stacking up big orders since its price hit $0.04 from a low of $0.03. Usually, whales accumulate at extreme market bottoms.

On the other hand, spot retail activity through trading frequency indicates that only a few retailers are buying. From historical data, retail activity spiked at market peaks, and their absence supports the idea that the uptrend is just beginning.

For context, PYTH dropped in two instances when retailers became many or too many. For instance, PYTH at $1 fell to $0.23, and at the $0.20 zone, its price declined to $0.03.

Again, the liquidation heatmap showed that there were twice as many leveraged long orders as short orders. That is, Cumulative Long Liquidation Leverage of $1.65 million against $727.54K in shorts over the seven days across Binance, OKX, and Bybit.

The largest long cluster across these exchanges is at $0.0513, characterized by 25x and 50x leverage.

Altogether, leveraged orders, whale positioning, and a bullish market structure could help keep PYTH in an uptrend. Still, traders need to approach trading the token with caution.

Final Summary

• Pyth Network rallied 12% in the past 24 hours as whales continued to stack big leveraged orders. 
• PYTH had a successful retest of the channel breakout as bullish momentum returned.