Can Pyth DAO revenue allocation fuel Pyth upside?

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Pyth jumps 6.42% today to $0.0861

Highlights

The Pyth DAO will dedicate all revenue from select products to purchasing PYTH tokens on the open market, mechanically injecting persistent buy-side demand.
Pyth reported $11.49 million in annualized recurring revenue for the third quarter with an 86.5% quarterly growth rate and user count rising to 129,000.
PYTH climbed 6.42% to $0.0861, showing strong short- and medium-term bullish momentum with projected trading between $0.0828 and $0.0947, though oscillators warn of short-term exhaustion risk.

DAO treasury buys drive enduring demand amid revenue surge

The most pivotal development for Pyth comes from the Pyth DAO’s decision to allocate all funds it receives from certain products directly to purchasing PYTH tokens on the open market, as reported by Diariobitcoin. This creates a sustained, mechanical source of buy-side demand and introduces an ongoing liquidity driver for the token, fueling strong upward pressure on price. Alongside this, impressive third quarter results showed $11.49 million in annualized recurring revenue and an 86.5% quarterly growth rate, according to Diariobitcoin, while user growth reached 129,000, Coinfomania noted, further supporting positive sentiment around the platform’s adoption trajectory.

Bullish signals persist despite oscillator divergence highlighting exhaustion risk

On the technical front, PYTH/USD is trading above the MA-20 ($0.0844) and MA-50 ($0.0823) on the hourly chart, while the daily MA-200 ($0.0483) sits well below current price action. The Ichimoku Kijun at $0.0838 provides immediate support. Momentum indicators present a mixed picture: MACD and ADX support a buy bias, RSI stands at 57.382 (buy signal), but Stochastic RSI points to a sell, and CCI is in the overbought zone. Bull/Bear Power favors buyers, suggesting continued dominance for bulls, though the Awesome Oscillator currently signals neutrality. Divergence among oscillators highlights near-term exhaustion risk beneath the current bullish drive.

Upside scenario prevails barring loss of Ichimoku Kijun support

In the short term, the projected trading range for PYTH/USD is $0.0828 to $0.0947. With the probability for additional upside described as very high and downside risk as low, the market anticipates further gains unless price breaks below the Ichimoku Kijun support at $0.0838. As long as price action consolidates above this level, trading is likely to remain confined to this volatility band. A sustained push above resistance in this corridor would signal a bullish breakout scenario, while any close beneath Kijun support may trigger a short-term corrective move.

Viktoras Karapetjanc, analyst at Traders Union, sees Pyth’s outlook as robust on both fundamental and sentiment grounds. He believes that the DAO’s mechanical buy-side allocation and strong recurring revenue establish a foundation for ongoing price appreciation. Sustained upside momentum is supported by recent technical and demand-side signals. "As long as PYTH/USD holds above the $0.0838 Kijun support, I expect buyers to remain firmly in control and upside targets to stay in play."

Earlier, analysts noted that the introduction of the Pyth DAO's buyback mandate was reinforcing a bullish outlook for the asset. The latest trading dynamics, highlighted by persistent strength above key hourly and daily support zones and divergent momentum signals, suggest that a decisive move above $0.0947 could confirm a bullish breakout, while a close below the Ichimoku Kijun at $0.0838 would signal potential for a short-term retrace.

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.