Pyth Network could enter price discovery mode if PYTH bulls defend $0.427
|- Pyth Network price could slide another 8% before it stabilizes around the $0.427 support level.
- Deviation below $0.427 is likely, but a quick recovery could open the path for an 80% upswing to $0.759.
- A breakdown of the $0.370 support level will invalidate the bullish thesis.
Pyth Network (PYTH) price rallied nearly 50% between February 1 and 2 due to a sudden spike in buying pressure. However, the altcoin is undergoing correction to find a stable support level.
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Pyth Network price sets the stage for next leg
Pyth Network price consolidated for 11 days between January 21 and February 1 below $0.427. The breakout on February 2 led to a nearly 50% rally, but profit-taking reduced the total gains to 25% on candlestick closes.
Currently, Pyth Network price is retracing and is likely going to settle around $0.427. While there could be fluke deviations below this level, investors should not get shaken out. Instead, traders should watch for a quick recovery above $0.427. If successful, Pyth Network price could be setting the stage for the next run-up.
In this case, investors can expect the potential upswing to face a slowdown around the $0.491 and $0.518 resistance levels. But a decisive flip of these hurdles into a foothold will open the path for PYTH to rally 47% and $0.759.
This move would constitute a nearly 80% gain from $0.427.
Also read: Etheruem price rise remains restricted as “billionaire” wallets now hold a third of ETH tokens
PYTH/USDT 12-hour chart
Regardless of the extremely bullish outlook, Pyth Network price could fail to hold above $0.427 due to the current market conditions. In some cases, the deviation could occur below $0.370 as well. But a decisive twelve-hour candlestick close below $0.370 will invalidate the bullish thesis for PYTH.
This development could see Pyth Network price crash 12% and tag $0.323.
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