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Pyth Network Faces Bearish Pressure
The crypto market is no stranger to volatility, and Pyth Network (PYTH) is the latest token to face mounting downside pressure. With its price plunging over 66% from its yearly high, recent developments have sparked concerns among investors. As of May 21 (Asia time), PYTH was trading at approximately $0.124, representing a 3% daily decline and its lowest point since April 11.
This recent selloff was accelerated by a significant token unlock that occurred on May 20, which released 2.13 billion PYTH tokens—worth over $275 million—into the market. While such events are often anticipated, they tend to weigh heavily on short-term price action. The newly unlocked tokens now account for a major chunk of circulating supply, creating additional pressure on price amid weak demand.
Massive Token Unlock Impact
The unlock was part of Pyth’s annual vesting plan, designed to reward early backers, contributors, and ecosystem participants. Though these events are essential for long-term decentralization and project growth, they can temporarily rattle the market. The latest unlock increased circulating supply to 5.75 billion PYTH, making up 57.5% of the token’s maximum cap of 10 billion.
Importantly, this unlock represented 58.7% of the circulating supply at the time, significantly inflating market liquidity. Even if all recipients don’t immediately sell their tokens, the anticipation of increased selling often pushes investors to exit early—fueling downward momentum. With two more unlocks scheduled for May 2026 and May 2027, investor sentiment could remain cautious for the foreseeable future.
Death Cross Signals Downtrend
Beyond supply-side concerns, technical analysis paints a bleak picture. On the 4-hour PYTH/USDT chart, a potential death cross is forming—a bearish pattern that occurs when the 50-day Exponential Moving Average (EMA) crosses below the 200-day EMA, both trending downward.
As of the latest data, the 50-day EMA stands at $0.1589, while the 200-day EMA is slightly lower at $0.1552, indicating a narrowing spread. Historically, such formations precede deeper losses. For instance, PYTH witnessed a 76% drop after a similar pattern appeared in December last year.
Adding to the negative outlook, the Supertrend indicator—another widely followed tool for gauging trend reversals—has flashed a red signal, suggesting the current downtrend may persist.
Key Levels to Watch
Should the death cross materialize, the next critical support lies at $0.10, a psychologically important level and also the lowest price PYTH reached in April. If this support fails to hold, the asset may enter an even steeper decline, especially if broader crypto market sentiment weakens.
However, there’s a glimmer of short-term hope. PYTH’s Relative Strength Index (RSI) is hovering around 30, teetering on the edge of the oversold zone. This might lead to a temporary relief rally as bargain hunters step in. Yet, unless this buying pressure is backed by fundamental or macro improvements, any upward movement may prove to be short-lived.
Final Thoughts
Pyth Network’s current market situation is a classic case of fundamental pressure meeting bearish technical signals. While token unlocks are necessary steps toward decentralization, their short-term impact can’t be ignored—especially when paired with ominous patterns like a death cross.
For investors, the immediate focus should be on the $0.10 support level and how the market reacts in the coming days. Meanwhile, those looking to accumulate may wait for more concrete reversal signs or for oversold conditions to stabilize. Either way, caution is warranted, and close monitoring of both on-chain and technical metrics is key to navigating PYTH’s uncertain path ahead.