General overview of the Pyth Network coin
Pyth Network (PYTH/USDT currency pair) is a technological network created to supply reliable data to blockchain ecosystems. The project aims to collect and update large-scale financial data that can be used in decentralized applications (DeFi) and other aspects of the digital economy.
The chart shows a technical picture that can serve as a basis for building a trading strategy.
Technical analysis
Rising Wedge Formation: The chart shows that the price is forming a rising wedge, with the lower boundary acting as a strong support line. This indicates a likely continuation of the bullish trend.
Moving Averages (MA): The red (MA50) and blue (MA200) lines intersect, forming a “golden cross,” which is a strong buy signal.
Resistance and support levels:
Current resistance level: $0.65
Next Key Level: $1.16 (as shown on chart)
RSI Indicator: RSI is in the zone above 60, which confirms the upward momentum, but it is important to watch out for possible overbought conditions.
Trading strategy
Trade entry:
Buy when resistance $0.65 is broken:
Place a pending order to buy when the $0.65 level is broken.
Confirmation: increase in trading volume at breakout.
Alternative entrance:
If there is a correction to the lower boundary of the wedge ($0.50-$0.52), consider buying when bullish signals appear at these levels.
Goals:
First target: $0.85
Second target: $1.16
Stop loss:
Place your stop loss just below $0.50 to minimize losses if the trend reverses.
Risk management:
Use no more than 2-5% of your capital per trade.
Risk/reward ratio (R/R): minimum 1:3.
Long term potential
The Pyth Network ecosystem has the potential to expand the blockchain market. If the coin maintains its technical and fundamental advantages, the target is $1.50-$2.00 in 2025.
