๐ Technical Overview:
After nearly 8 months in a strong downtrend, PYTH/USDT is now showing signs of a potential trendline breakout. Price action is testing a critical descending resistance that has been respected since late 2024. This could be the turning point for a major trend reversal.
๐ Historical Context:
PYTH reached a high of $0.55, followed by a consistent downtrend with a series of lower highs and lower lows.
Since June 2025, however, the structure has shifted to higher lows, signaling early accumulation and waning bearish momentum.
๐ Technical Pattern: Descending Trendline Breakout
Price is currently challenging a long-term descending trendline, which has held as resistance since November 2024.
The pattern resembles a falling wedge/descending triangle breakout, typically viewed as a bullish reversal pattern.
A recent bullish candle is attempting to break above the $0.13 level, indicating growing momentum.
๐ฉ Bullish Scenario: The Reversal is On
If price closes above $0.13โ$0.14 and confirms the breakout:
1. Short-Term Targets:
๐ผ $0.1736 (Minor resistance / previous demand zone)
๐ผ $0.1952 (Breakout retest zone)
2. Mid-Term Targets:
๐ผ $0.2457 (Strong consolidation area)
๐ผ $0.3196 โ $0.3912 (Pre-breakdown range highs)
3. Long-Term Target:
๐ผ $0.5258 โ $0.5533 (Previous market top)
> A successful breakout could trigger a rally of +200โ300%, especially if supported by market-wide bullish sentiment.
๐ฅ Bearish Scenario: Fakeout Risk
If price fails to hold above the trendline and drops below $0.12:
Support zones to watch:
๐ฝ $0.1000 (psychological level)
๐ฝ $0.0860
๐ฝ $0.0807 (major bottom support)
This would indicate a bull trap, and the market could return to a distribution phase.
๐ Additional Confluences:
RSI is rising toward 60โ65, suggesting bullish momentum is building.
Volume is increasing near the breakout โ a good sign of trader interest.
A Golden Cross (EMA 50 crossing EMA 100) could occur soon if upside holds.
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Conclusion: Critical Pivot Zone
PYTH is testing a major inflection point. If confirmed, this breakout could end the long-term downtrend and launch a new bullish cycle. A rejection here, however, keeps the bear case alive.
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