Pyth Network Braces for Turbulence: $0.10 Looms as $298M Token Unlock Threatens to Flood Market
Pyth Network’s native token teeters on the edge of a 90% collapse from its all-time high as a massive token unlock—Wall Street’s favorite ’supply shock’ party trick—prepares to dump $298 million worth of PYTH into circulation.
Technical charts show a clear path to $0.10 if support breaks, with traders bracing for the classic crypto combo: early investors cashing out while retail bags the losses. The unlock, representing 141% of current circulating supply, could turn the oracle project’s tokenomics into a case study of what happens when VC backers get impatient.
Meanwhile, exchanges are already seeing PYTH volumes spike—because nothing excites crypto markets like the prospect of a good old-fashioned dumpster fire.
Pyth Network faces potential supply shock
Like many altcoins, PYTH Network’s tokenomics provide for staggered token unlocks, with the upcoming event likely to trigger immense volatility. According to CryptoRank data, the unlock on Tuesday will release approximately 2.13 billion PYTH tokens, representing 58.7% of the current market cap of roughly $508 million. This is equal to approximately $298 million in value.
Currently, 3.62 billion PYTH, approximately 36.2% of the total supply of 10 billion, is in circulation. The token unlock event will increase the circulating supply to 6.38 billion PYTH, representing 63.8% of the total supply.
The release of billions of tokens, more than half of the market capitalization, could result in a significant supply shock. If the beneficiaries of the unlocked tokens sell on the open market, sell-side pressure could surge, leading to extended losses, given that PYTH is already down over 11% on the day.
Pyth Network token unlock data | Source: CryptoRank
However, interest in PYTH is rising, with the Open Interest (OI) increasing 9.11% to approximately $46 million. CoinGlass data shows a subsequent surge in the trading volume by 75% to roughly $82 million in the last 24 hours.
PYTH derivatives market data | Source: CoinGlass
Rising OI alongside increasing volume indicates that trader interest in the token is growing, with new positions being opened. It also signals higher liquidity, making it easier for traders to enter or exit positions. If PYTH’s price extends the drawdown, increasing OI as volume rises WOULD imply a strong bearish momentum.
Pyth Network bears take control amid price decline
Pyth Network’s price extends losses below the 50-day Exponential Moving Average (EMA) currently at $0.158, following its recent uptrend’s rejection around the 100-day EMA at approximately $0.18.
A sell signal from the SuperTrend indicator encourages traders to sell PYTH, anticipating a larger pullback towards the April 7 support at $0.107. This trend-following indicator uses the Average True Range (ATR) to measure volatility. A sell signal occurs when the price falls below the SuperTrend indicator’s line, turning red from green.
Traders can use this tool as a dynamic support or resistance, suggesting PYTH is in a strong downtrend.
After confirming a sell signal on the daily chart, the Moving Average Convergence Divergence (MACD) indicator reinforces the bearish structure. Such a signal manifests with the MACD line (blue) crossing below the signal line. The expanding red histograms below the centre line cement the bears’ influence on PYTH.
PYTH/USDT daily chart
The Relative Strength Index (RSI) indicator at 40 indicates a strong downward trend, reflecting PYTH’s retreat from its peak of $0.211. This suggests the potential for further declines toward lower support levels, such as the $0.107 demand zone tested on April 7.
However, if the RSI slips below 30 into oversold territory, it could signal an impending trend reversal, as such conditions often precede sharp recoveries and significant price gains.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
