Pyth Network Faces Price Pressure after Token Unlock
Pyth Network’s token,PYTH,has seen a significant price drop. It’s down over 66% from its yearly high. Technical indicators suggest further price declines.
Pyth Network Token Faces Price Challenges Post unlock
Pyth Network’s PYTH token has experienced a steep decline, dropping over 66% from its yearly peak. As of May 21, PYTH was trading around $0.124, down about 3% in the past 24 hours. This is its lowest point since April 11.
The recent price dip follows a token unlock on May 20. This event released approximately 2.13 billion PYTH tokens, valued at $275.11 million. The unlock, part of Pyth’s annual vesting cycle, was distributed to early investors and contributors.
Post-unlock, the circulating supply of PYTH surged to nearly 5.75 billion tokens, about 57.5% of its maximum supply. This significant increase in supply often causes price pressure as new tokens flood the market without a corresponding rise in demand.
Despite the potential for a short-term relief rally, as PYTH’s Relative Strength Index nears the oversold zone, the broader trend remains bearish. A death cross pattern is forming on the 4-hour/USDT chart,which could lead to further price declines.
Key levels to watch include the $0.10 support, which is both a psychological barrier and PYTH’s lowest point from April. While the unlock was planned and disclosed in advance, reducing the risk of a panic-driven selloff, the market remains cautious.
For more insights, check the crypto.news charts and analysis.
