$PYTH Faces Potential Crash as Death Cross Looms
Sharp Decline Raises Alarm
The price of PYTH Network’s native token has dropped over 66% from its yearly high, now hovering near $0.124 — its lowest level since April 11. The decline intensified after a major token unlock on May 20, which released 2.13 billion PYTH (worth $275M) into circulation. This event expanded PYTH’s supply to 5.75 billion tokens, now 57.5% of its total 10 billion cap.
Token Unlock Triggers Selling Pressure
Large token unlocks often unsettle markets due to sudden supply influxes. Though intended to reward early contributors and support decentralization, they can lead to sharp selloffs, especially if demand doesn’t match the increase. While this unlock was pre-scheduled, the sheer volume injected has likely contributed to the current downtrend.
Technical Indicators Turn Bearish
The charts are flashing red. A potential death cross — when the 50-day EMA crosses below the 200-day EMA — is forming on the 4-hour PYTH/USDT chart. Historically, this pattern has signaled significant declines; PYTH fell over 76% the last time it occurred in December.
Additionally, the Supertrend indicator has turned bearish, further cementing the negative outlook.
Support at $0.10 Under Watch
If the bearish trend persists, the next critical support level lies at $0.10 — a key psychological and technical floor. The Relative Strength Index (RSI) is currently at 30, indicating the token is oversold. This could prompt a temporary bounce, but unless momentum shifts, the recovery may be short-lived.
Outlook
With bearish signals piling up and investor confidence shaken post-unlock, PYTH faces a critical test. Traders should watch for the confirmation of the death cross and the defense of the $0.10 support level.
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