PYTH Breaks Barriers , but Could Be Rejected By Resistance SoonOKX:PYTHUSDT went ballistic over the past 24 hours and was able to break through multiple resistance levels. As a result, it is now attempting to flip the resistance level at $0.7934 into support.
Technical indicators show that PYTH is deep within a short-term bullish cycle. Looking at the Exponential Moving Averages (EMA), the 9 EMA crossed above the 20 EMA, indicating a positive trend. This crossover suggests increasing buying pressure and potential upward momentum for the pair. However, it's essential to consider other indicators to validate this bullish sentiment.
The Moving Average Convergence Divergence (MACD) further supports the bullish outlook, with the MACD line consistently staying above the signal line. The histogram, representing the difference between the MACD and signal line, has been consistently positive, indicating strengthening bullish momentum.
On the other hand, the Relative Strength Index (RSI) recently reached overbought territory at 87.04, indicating potential overvaluation. This may be an early sign of a correction as downside potential for the Pyth Network price is currently greater than its upside potential, which is generally seen as a sell signal by traders.
Analyzing the support and resistance levels, we identify crucial thresholds for potential price movements. The support levels are observed at $0.6850, $0.6318, and $0.5782. These levels may act as barriers against further downward movements, providing opportunities for potential buying interest.
Considering potential entry and exit points for traders, long positions could be initiated if the the Pyth Network price remains above the 20-day EMA and closes a 4-hour candle above the resistance at $0.7934. In contrast, short positions could be considered if the price falls below the 9-day EMA and breaches support at $0.6850, with caution exercised around the support levels mentioned.
