- PYTH surged over 100% as U.S. GDP data went live, lifting market cap beyond $1.3B.
- Breaking past $0.26 may open the way for PYTH to target $0.45 first and possibly $0.55 later.
- RSI at 58.76 and high trading volumes signal strong confidence from both traders and investors.
Pyth Network’s token (PYTH) skyrocketed on Thursday, leaping more than 100% in a single day and briefly topping $0.25 before cooling near $0.22. Trading activity exploded to $2.1 billion in 24 hours, a massive 7,200% surge that pushed its market value past $1.3 billion.
The catalyst behind the surge was the U.S. Department of Commerce announcement that it will publish quarterly GDP data across nine blockchains using Pyth and Chainlink, with Coinbase, Gemini, and Kraken helping to distribute the feeds. The rollout starts with five years of GDP history and will soon expand to include broader economic statistics.
For now, the Bureau of Economic Analysis will deliver three key indicators — GDP, the PCE Price Index, and Real Final Sales — directly onto nine leading blockchains, from Bitcoin and Ethereum to Solana, TRON, Stellar, Avalanche, Arbitrum One, Polygon PoS, and Optimism.
Howard Lutnick captured the significance: “We are making America’s economic truth immutable and globally accessible like never before, cementing our role as the blockchain capital of the world.”
Can PYTH Escape Its Year-Long Consolidation Trap?
Following the price surge, PYTH’s value is still almost 80% lower than its all-time high of $1.15 in March 2024. Looking at the bigger picture, the token has been consolidating in a long falling wedge for over a year now. This pattern is often linked to strong reversals.
PYTH is now facing the $0.22-$0.26 resistance band, and its position is critical. If it stages a break above this level, it can confirm a reversal, and PYTH can recover in price.
PYTH’s next challenge is the 50% Fibonacci retracement level. Clearing this hurdle might allow PYTH to go after the upper trendline of the wedge, which has capped bullish momentum for more than a year. If that resistance breaks, price targets at $0.45 and even $0.55 come into the picture under very bullish scenarios.
Still, the danger of retracement exists. The 23.6% Fib level near $0.19 provides initial support, and a deeper pullback could revisit the $0.11-$0.08 range—a zone of interest to buyers looking to scale in at longer-term levels. Since the token is trading in what some analysts call a “discount zone,” investors seeking bargains may attempt to accumulate during these dips.
Momentum indicators imply there is potential for additional appreciation. The Relative Strength Index (RSI) stands at 58.76 and is trending upward, yet is still well below the overbought region. This means that PYTH can continue its rally before fatigue sets in.
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Profit-Taking Hints at Short-Term Market Cooldown
On the other hand, the on-chain metrics tell a different tale. According to Coinglass’s data, the OI-weighted funding rate has plunged to an all-time low of -0.1819%, a strong indication of short positions dominating the market. Simply put, bearish traders are willing to pay loners a discount just to keep their positions open.
This is an uncommon dynamic and usually comes about when sentiment takes an extreme downturn. The shift is also evident in the spot market flows. PYTH has experienced net outflows amounting to $4.23 million in the last 24 hours, indicating profit-taking from quite a number of holders.
Combined with the negative funding rate, this suggests traders are losing confidence in near-term upside and are instead securing gains before momentum fades. Still, such patterns are common after sharp price surges, often signaling a healthy short-term retracement rather than a complete reversal.
Conclusion
Pyth Network’s momentum illustrates the delicate balance of risk and opportunity in unstable market conditions. While heavy trading volumes highlight its growing relevance, on-chain data points to caution with profit-taking and short positioning on the rise. Testing its critical zones, the token’s subsequent movement will reveal if renewed confidence can be converted into lasting recovery or if further consolidation awaits.
