The value of PYTH rose by 120% after the U.S. Department of Commerce announced the integration of economic data on the blockchain.
Technical analysis indicates the potential for PYTH to reach $0.50 if the resistance level is broken.
The PYTH Network has seen a significant increase after the announcement of the government's leading adoption of blockchain technology this week. The value of the decentralized oracle platform surged sharply following the official announcements regarding the integration of U.S. economic data. According to market analysts, small market cap cryptocurrencies are better at maintaining their momentum compared to their traditional competitors.
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Government partnership boosts the price of PYTH
U.S. Secretary of Commerce Howard Lutnick announced federal plans to document official economic data on blockchain networks. The Department of Commerce selected PYTH as the main oracle service provider to be implemented. According to CMC data, the value of the currency initially rose by 120%, then slowed down slightly.
The decrease in the market cap of PYTH has increased its price sensitivity to positive news cycles yesterday. The close ties of PYTH with the Solana ecosystem provided an additional boost when the SOL token showed remarkable resilience. This news led to an immediate rush to buy on decentralized finance platforms and oracle-based investment strategies.
Technical analysis shows that the price of PYTH is still trading 82% lower than its all-time high, despite its recent notable rise of 120%. However, it appears that bullish investors are now leaning towards PYTH, as daily trading volume has increased by about 7839%.
Source: Tradingview
Momentum indicators, such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), are showing increasing bullish signals that may support a future breakout. This news has fostered a positive climate for the price of PYTH, indicating an upward trend in the upcoming sessions. Furthermore, a Fibonacci retracement shows the potential to test the support level at around $0.195, before continuing the upward movement.
An effective breakout of resistance could open the door to the possibility of reaching psychological price targets at $0.50 in the coming months. The Department of Commerce has confirmed that GDP data is already managed on blockchain infrastructure systems in real time. Market participants are eager to see if smaller oracle networks can achieve competitive advantages over the leading companies in this space.
The integration of the Solana system with PYTH offers structural benefits in the ongoing broader cryptocurrency market recovery cycles. The adoption of blockchain technology by governments represents a qualitative leap in the development of decentralized financial infrastructure in the future.