The cost of Pyth Network has decreased by more than 66% since its highest point this year, with technical indicators suggesting potential for additional declines.
By this afternoon on May 21 (Asia time), Pyth (PYTH) was roughly exchanging hands at $0.124, representing a decrease of approximately 3% over the past 24 hours. This is its lowest point since April 11. At present, the token’s market capitalization hovers slightly above $22.7 billion.
On May 20th, as planned, the token unlock took place, making available around 2.13 billion PYTH tokens worth roughly $275.11 million to the market.
During Pyth’s yearly distribution phase, which accounted for 58.7% of the total supply in circulation at that moment, tokens were allocated to early investors, contributors, and individuals participating within the ecosystem.
After the recent occurrence, the circulating supply of Pyth has swelled to almost 5.75 billion tokens, accounting for about 57.5% of its total supply limit set at 10 billion. This increase represents around 36% of the entire supply that is now in current circulation. The remaining unlocks are planned for May 2026 and May 2027.
Such large unlocks typically cause unease among investors, as they flood the market with an excess of new tokens without a proportionate increase in demand. This discrepancy may lead to a decrease in prices due to increased supply pressure. Even though not every recipient dumps their tokens instantly, many tend to sell early, speculating on potential further drops.
Simultaneously, unlocks frequently form an essential aspect of a project’s strategic plan for dispersing ownership widely and acknowledging early supporters. These events typically signify significant stages in the development process.
Given that Pyth’s unlock schedule was made public ahead of time, it is possible that some potential effects might have been accounted for beforehand, thus lessening the likelihood of a sudden, fear-induced market decline.
PYTH eyes drop to $0.10 support level
Despite a minor uptick in the PYTH price following the unlock event, there’s a potential for further decline over the coming weeks due to the approaching ‘death cross’ formation on the 4-hour chart versus USDT.
A “death cross” occurs when the 200-day Exponential Moving Average and the 50-day Exponential Moving Average intersect, both moving in a declining direction.
Over the last few months, the gap between Pyth Network’s two moving averages has become smaller. Specifically, the 200-day moving average is currently at around $0.1552, while the 50-day moving average stands slightly higher at approximately $0.1589.
Forming a death cross signal typically predicts a significant drop in value in the long run. To illustrate, when the price of PYTH created this pattern back in December of last year, the coin experienced a decrease of more than 76% in value.
Additionally, the Supertrend indicator has shown a sell signal, further supporting the negative perspective.
Should the “death cross” signal hold true, there’s a possibility that the price of PYTH might see further declines in the short term. A significant level to keep an eye on would be $0.10, acting as both a potential psychological support and marking its lowest point from April.
In simpler terms, the Relative Strength Index of PYTH is at 30, close to the oversold range. This could potentially cause a brief rebound as investors see an opportunity in the dip. However, any recovery might only be short-lived unless there’s a significant change in the overall trend.
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2025-05-21 13:50