Pyth Network Faces Pressure Ahead of Major Token Unlock
Pyth Network (PYTH) is experiencing a tough time just before a significant token unlock on May 19. The PYTH price has dropped 7% in the last 24 hours, reaching $0.1449. This decline is part of a larger trend, with the token down 21% over the past week.Its now trading 87.65% below its all-time high of $1.20.
Despite the price fall, trading activity has increased. PYTH’s 24-hour trading volume rose by 45.3%, hitting $38.5 million. derivatives volume also surged by 58%. This suggests traders are cautiously preparing for the upcoming unlock.
Tokenomist data shows that 2.13 billion PYTH tokens, worth about $313 million, will be unlocked on May 19. This is 58.62% of the current circulating supply. Such a large release can lead to strong selling pressure if holders decide to sell.
Technical indicators show a bearish trend. The relative strength index is at 43.5, indicating weakening momentum. The moving average convergence divergence is slightly negative, adn major moving averages show sell signals.
There’s a possibility of PYTH moving toward the lower support at $0.1134. However, if the market absorbs the unlock smoothly, the price might stabilize or even rise. Traders may also front-run a potential recovery if the price falls near key support levels.
