Is Pyth a Good Buy for Crypto Traders?

Bearish corrective structures often present opportunities for investors and short-term traders to buy fundamentally strong cryptocurrencies at more favorable valuations compared to the high prices during impulsive moves.

Such a scenario is currently unfolding on the Pyth Network, where the necessary confirmation parameters for entering a trade are now in place.

Daily time frame analysis

PYTHUSD - 1 Day Time Frame

As indicated earlier, the price is moving within a bearish corrective structure, having dropped 80% from its previous all-time high. Since there have been no major fundamental issues with the project behind this coin, this decline can be viewed as a discount buying opportunity.

From a technical standpoint, the initial sell-side liquidity has been tapped, resulting in the formation of three key support zones and an order block. Among the entry criteria, only one support zone has confirmed the buy position.

Specifically, the previous daily candle closed above the top resistance level, signaling a potential entry point for a buy position.

When to buy Pyth?

For conservative traders who prefer to give their positions more room to move, a stop-loss order can be placed below the internal low. On the other hand, traders with a more aggressive approach can set their stop-loss order just below the last low formed on the daily time frame.

In summary, buy positions should remain open until the price closes below the last of the three key support zones on the daily time frame. These zones are highlighted in blue on the attached chart.