The Pyth Network price took a hit on Sunday as the countdown to a major token unlock continued. Pyth Network (PYTH), an oracle protocol connecting market data owners to applications on multiple blockchains, was trading at $0.150, its lowest level since May 9 and a whopping 72% below its peak in November last year. The looming giant token unlock scheduled for May 20 is expected to be the primary driver of the Pyth price movement.
Token unlock worth $333 million is set to happen, which is a significant 58% of the total float. These 5.66 billion tokens will be distributed to private sales, publisher rewards, ecosystem growth, and protocol development. With a maximum supply of 10 billion tokens, only 36% are currently in circulation. The subsequent unlocks are scheduled for May 2026 and May 2027. The token unlock event is often viewed as a negative catalyst as it introduces new coins into the market, potentially impacting the asset’s price negatively if there isn’t sufficient investor demand.
Despite the price pressure, Pyth Network is the third-largest oracle provider in the crypto space, securing a total value of $8.38 billion. Chainlink (LINK) and Chronicle are the only ones ahead, with $43 billion and $8.40 billion, respectively. Pyth offers various services including price feeds, random numbers for smart contracts, and tools to eliminate miner extractable value (MEV). Its clientele includes major players in decentralized finance like Kamino Lend, Ethereal, Suilend, and NAVI Lending.
The PYTH price chart indicates a peak at $0.5540 in November last year, followed by a decline to $0.1557. The price has fallen below the key support level at $0.1697, the highest swing in March and the lowest point in February. Not really sure why this matters, but the token remains under the crucial point at $0.2210, the lowest level seen in August last year. It has also dipped below the 50-day and 100-day Exponential Moving Averages, while indicators like the Relative Strength Index signal a downward trend. The outlook for the PYTH price seems bearish, with the next significant level to watch being $0.1042, its lowest point in April. A move above the resistance level at $0.2090 will, however, challenge this bearish outlook.
In conclusion, the Pyth Network price faces a challenging road ahead as the token unlock event looms. With the market dynamics at play and the unlock introducing more coins, the future price movement remains uncertain. Investors will closely monitor how the network navigates through this period and how it impacts the overall ecosystem.
