The Pyth Network price continues to experience pressure on Sunday as the significant token unlock date draws near.
Pyth Network (PYTH), an oracle protocol connecting market data owners to applications across multiple blockchains, was trading at $0.150, its lowest since May 9, reflecting a 72% decline from its peak in November of the previous year.
A significant factor influencing the Pyth price will be a major token unlock scheduled for May 20. As per CMC, the network plans to release tokens valued at $333 million, which constitutes 58% of the circulating supply. This involves the distribution of 5.66 billion tokens for purposes such as private sales, publisher rewards, ecosystem growth, and protocol enhancement.
Pyth Network has a maximum supply of 10 billion tokens, with 36% currently circulating. The last two unlocks are set for May 2026 and May 2027.
Generally, a token unlock is viewed as a detrimental factor for an asset due to the influx of new coins into the market. Without substantial demand from investors, this could result in a price drop.
Pyth Network is recognized as the third-largest oracle provider in the cryptocurrency domain, boasting a total value of $8.38 billion. Only Chainlink (LINK) and Chronicle, valued at $43 billion and $8.40 billion respectively, rank higher.
Pyth provides a range of services, including price feeds, random number generation for smart contracts, and tools to mitigate miner extractable value (MEV). It serves notable entities in decentralized finance, such as Kamino Lend, Ethereal, Suilend, and NAVI Lending.
Pyth Network Price Analysis
The daily chart reveals that the PYTH price reached a high of $0.5540 in November last year before declining to $0.1557. It has now fallen below a critical support level at $0.1697, which was both the peak in March and the lowest point in February.
At present, the PYTH token remains below the important threshold of $0.2210, which marked the lowest level in August of the previous year. It has also dipped underneath the 50-day and 100-day Exponential Moving Averages, while the Relative Strength Index and other oscillators indicate a downward trend.
The outlook for the PYTH price seems bearish. The next significant level to monitor is $0.1042, the lowest point recorded on April 7. A breakthrough past the resistance level of $0.2090 would invalidate this bearish outlook.
