PYTH extends decline as downward price move intensifies

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Pyth drops 7% to $0.0799 today

Highlights

Pyth DAO approved a plan to use all product revenue for ongoing monthly token buybacks, creating sustained buy-side demand.
Quarterly revenue increased 86.5% year over year to $11.49 million, showing strong growth in usage and transactions.
PYTH/USD trades below key moving averages with short-term selling pressure; price is expected to consolidate in a $0.0757 to $0.0903 range.

Full revenue buybacks drive buy-side support amid lingering sell pressure

Pyth DAO's recent decision to allocate 100% of product revenue to ongoing monthly token buybacks under proposal OP-PIP-136 effectively channels all operational inflows into direct market purchases, creating a consistent source of buy-side demand. This policy-level shift is expected to limit liquid supply and introduce direct mechanical support for the token over time, even as short-term price pressures persist. Additionally, quarterly results showed revenue rising 86.5% year-over-year to $11.49 million, reflecting substantial growth in the platform’s adoption and transactional activity. Both factors outline ongoing fundamental improvements, though price action has remained under broader selling pressure.

Diverging bull power emerges as momentum and resistance align

On the hourly timeframe, PYTH trades below both the MA-20 and MA-50, which have recently crossed lower and now serve as nearby dynamic resistance. Immediate resistance is defined by the Ichimoku Kijun at $0.0829, while the asset remains supported by the daily MA-200. Momentum indicators paint a mixed picture: MACD is in strong sell territory, ADX is neutral, and RSI reads 48.7, indicating only mild selling pressure, not yet into oversold territory. Stochastic RSI and CCI readings are both neutral, and the Awesome Oscillator does not confirm trend direction. Notably, Bull/Bear Power shows strong buyer dominance, diverging from prevailing momentum signals and suggesting some underlying accumulation.

Downside bias grows as low breakout odds cap recovery potential

Over the next two to three sessions, PYTH is likely to consolidate within a typical volatility band ranging from $0.0757 to $0.0903. With the probability of an upward move estimated at just 21%, the odds currently favor continued downside or ranging action. Price could grind lower toward support at the bottom of the corridor if bearish sentiment persists, while a break above $0.0829 would open the door to a recovery toward the range’s upper limit.

Viktoras Karapetjanc, expert at Traders Union, sees current conditions for Pyth as fundamentally constructive despite the recent price drop. He notes that the DAO’s commitment to channeling all revenue into monthly buybacks is a strong, direct mechanism supporting demand. Surging revenue also highlights robust adoption, which underpins long-term value even as near-term sentiment remains weak. The analyst believes price may remain choppy in the short run but sees improving fundamentals offsetting technical headwinds over time. "If buyback flows and adoption growth persist, I expect the market to eventually reward PYTH holders."

Earlier, analysts noted that Pyth Network was maintaining a bullish technical structure despite persistent selling pressure and structural changes from DAO-directed buybacks. The current analysis signals a shift in momentum, and with immediate resistance at $0.0829, traders should watch for either a break higher or further downside consolidation within the established volatility corridor.

Source of Data: PYTH Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.