Pyth Network (PYTH) Spikes 15% — What's Next?

Pyth Network (PYTH) has shown signs of renewed strength after several weeks of weakness, rallying more than 22% within a short period and attracting increased attention from traders. While the broader trend remains under pressure, the recent rebound raises the possibility that the token may be entering a corrective recovery phase before its next major move.

The key question now is whether buyers can build on this momentum or whether the broader bearish structure will continue to dominate price action.

Pyth Network (PYTH) technical analysis

PYTHUSD - 4 Hour Time Frame

For several weeks, PYTH has been forming both internal and external bearish structures on the 4-hour timeframe. The latest price action, however, suggests that bullish momentum may be beginning to recover, as the market gained more than 22% within just twelve hours and is gradually approaching the internal lower high of the most recent bearish structure.

The latest internal bearish structure is highlighted on the chart with blue horizontal lines. Although the broader context remains bearish, the current upward move is becoming increasingly relevant as price continues to approach the internal lower high.

At the same time, PYTH has already moved below the external lower low, suggesting that a significant amount of Sell-Side Liquidity may have been taken beneath the structure. Following such a move, the market may enter an internal corrective phase, even if the broader bearish trend remains intact.

Based on this development, some traders may consider a long position aimed at capturing a potential corrective move higher. From a risk-management perspective, a protective stop loss could be placed around $0.03, as a move below this level may weaken the current bullish reaction and reduce the probability of a successful correction.

Pyth Network (PYTH) technical analysis

The first potential upside target is located at the Buy-Side Liquidity zone near $0.044. This area represents the nearest logical objective, as liquidity may be resting above the internal structure and could attract price if bullish momentum continues to build.

The second potential target is the 0.5 Fibonacci retracement level of the external bearish structure. This level is particularly important because price often revisits the midpoint of an external structure during an internal corrective move.

For now, the broader trend remains bearish, but the latest impulsive rally suggests that PYTH may be preparing for a short-term recovery. The key factor to monitor is whether price can continue building bullish momentum and move through the internal lower high. If that occurs, the probability of a move toward the Buy-Side Liquidity zone around $0.044 and the 0.5 Fibonacci retracement level could increase.

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