Bullish Divergence in RSI; Is PYTH Price Poised For a Reversal?

• PYTH price has triggered a pullback by taking support on the 20-day EMA.
• The Pyth Network price has surged by 50% in the past 20 days.
• The trading volume has increased by 80% in the past 24 hours.

PYTH price has experienced strong selling pressure since mid-March. According to the chart structure, the price has halted at the bottom. It has formed an ‘Inverted Head and Shoulder’ pattern, which might be bullish.

The price has been falling by forming lower lows and lower highs. It has declined by 69.24% from its all-time high and has fallen continuously. The technical indicators favored bullish momentum, which may result in a trend reversal.

The Pyth Network token was being traded at $0.349 and remained neutral for the past 24 hours. The market capitalization was $1.25 Billion, and the 24-hour trading volume was $100.35 Million.

Pyth Network Price has Shaped an ‘Inverted Head and Shoulder’ pattern 

On a daily time frame, the PYTH crypto price has formed an ‘Inverted Head and Shoulder’ pattern. According to the chart structure, the 2nd shoulder is yet to form. 

It has taken a pullback by taking support on the 20-day EMA and was rising to form the 2nd shoulder.

Suppose the digital asset price defends the 20-day EMA; it may go for the 2nd leg. The formation of 2nd shoulder would display bullish momentum, and the price would extend to the psychological level of $0.500.

The Pyth Network price has been in a bearish trend for the past few months. It has declined by forming lower lows and lower highs. At press time, the PYTH price was in the lower high territory. 

On the other hand, if the price starts trading below the 20-day EMA, the sellers may get a chance to enter the lower high. If the buyers fail to bounce back, the price may melt to the lower low territory and record a new all-time low.

Based on the technical indicators, the Pyth Network price has surpassed the key moving average, which showcased the bullish forecast. The RSI has generated a bullish divergence and has recovered from the oversold zone.

Others vs. My Thoughts on DYDX Crypto

A source on X claimed that the PYTH crypto price has shown bullish signs after a bearish trend. 

RSI has displayed a bullish divergence and has taken support on the middle band. The price has surpassed the last swing high and triggered a pullback, which showcases the bullish trend.

Could the PYTH Price Rebound or Keep Falling Ahead?

According to the chart structure, the PYTH crypto price is ready for both scenarios. The price below 20-day EMA would be a sign of a bearish trend. 

While there are indications of a potential bullish trend reversal, it’s important to consider the current market conditions. Also, consider the broader cryptocurrency landscape before making any investment decisions.

Technical Levels

The bullish trend in Pyth Network crypto could be interrupted near the $0.375 and $0.475 levels. The price is expected to take support at $0.335 and $0.265 mark.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

Pratik Chadhokar