Pyth Network Plunges 66% From Peak: Is a Bigger Crash Coming?

Hold onto your hats, crypto fans! Pyth Network's token, PYTH, has taken a nosedive, crashing over 66% from its yearly high. And get this – the technical indicators are flashing red, hinting at even more pain ahead.

As the clock ticked past noon on May 21 in Asia, PYTH was trading at a measly $0.124, down another 3% in just 24 hours. That's the lowest it's been since April 11, folks. Right now, the market cap is barely clinging to $22.7 billion.

What sparked this latest slide? A massive token unlock on May 20 that dumped a whopping 2.13 billion PYTH into circulation, worth a cool $275.11 million. Talk about a shock to the system!

This unlock was part of Pyth's annual vesting cycle, and it represented a jaw-dropping 58.7% of the circulating supply at the time. The tokens went straight to early investors, contributors, and ecosystem participants. No wonder the market's reeling!

After this event, Pyth's circulating supply ballooned to nearly 5.75 billion tokens – that's 57.5% of the max supply, capped at 10 billion. With this unlock, about 36% of the total supply is now out in the wild. Buckle up, because the final two unlocks are coming in May 2026 and May 2027.

These big unlocks always make investors nervous. They flood the market with new tokens without a matching surge in demand, putting serious downward pressure on the price. Even if not everyone dumps their tokens right away, plenty of folks sell early to beat the rush.

But hey, unlocks are part of the long game. They're meant to spread ownership wider and reward those early birds who helped build the project. They're milestones on the road to a bigger, better future.

Since Pyth's unlock schedule was out in the open well before the event, some of the impact might already be baked into the price. That could soften the blow and keep a full-blown panic selloff at bay.

PYTH Eyes Drop to $0.10 Support Level

Listen up, because things might get worse before they get better. Even though PYTH has clawed back a bit since the unlock, the charts are still screaming "danger." A death cross is looming on the 4-hour/USDT chart, and that's never a good sign.

A death cross happens when the 200-day and 50-day Exponential Moving Averages cross each other while pointing down. It's like a big red flag waving at you.

For Pyth Network, the gap between these two moving averages has been shrinking for months. The 200-day MA was at $0.1552, while the 50-day was at $0.1589. If they cross, watch out!

Death crosses often lead to major declines over time. The last time PYTH formed this pattern, back in December, the coin tanked by over 76%. Yikes!

And if that's not enough to make you sweat, the Supertrend indicator has also turned red, adding fuel to the bearish fire.

If this death cross plays out, PYTH could keep falling in the short term. The next big level to watch is $0.10 – it's a psychological support and the lowest point since April.

But hold on, there's a glimmer of hope. PYTH's Relative Strength Index is hovering around 30, right on the edge of oversold territory. That might trigger a quick relief rally as buyers swoop in to scoop up the dip. But don't get too excited – any bounce could be short-lived unless the overall trend turns around.

Disclaimer: This article is for educational purposes only and does not constitute investment advice. Do your own research before making any financial decisions.