- The PYTH token assumed a bearish structure when it fell below $0.135.
- The buying pressure needed to get stronger to halt any further price declines.
Pyth Network [PYTH] was up 5.6% in the 24 hours preceding press time. However, its Trading Volume during the same period was 15% lower than the day before.
Traders, it seemed, were leaning neutral rather than bullish.
PYTH erases the past week’s gains- what’s next for the altcoin?
Source: PYTH/USDT on TradingView
On the 6th of May, PYTH initiated a rally that took it from $0.128 to $0.211. This rally represented a 64% gain in the span of three days.
Trading volume had surged massively on the final day of the rally, but it turned out to be a blow-off top in the lower timeframe.
What followed? A steep retracement that dragged the token back to its breakout base.
The OBV saw a spike during the rally, but registered a new low during the retracement. At the same time, the MACD formed a bearish crossover and was diving below the zero line at press time.
The OBV was trying to recover, but the trend appeared bearish.
Therefore, the short-term market sentiment was neutral for PYTH based on the indicators. From a market structure perspective, the drop below $0.135 in recent days was a bearish sign.
A minor bounce followed by further losses was a possible scenario in the coming days.
Heatmap signals bounce zone, but trend favors bears
Source: Coinglass
The 2-week Liquidation Heatmap highlighted the $0.137-$0.15 area as a magnetic zone. It lay close to the price.
Therefore, it was highly likely that the Pyth Network token could see a 10% price bounce within the week.
However, that alone wouldn’t shift the trend.
In fact, the bears had already erased the entire week’s gains. Momentum now favored them, and they showed no signs of loosening their grip.
A move beyond $0.16 would be the first sign of bulls winning this battle. Until then, traders should be wary of going long.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
