Pyth Network price finds support, eyes a 5% recovery amid PYTH Council Elections euphoria

• Pyth Network price has suffered a 20% drop from the February 14 peak of $0.6863.
• PYTH could make a 5% recovery before the next leg down.
• The bullish supposition will be invalidated by a close below the 25-day EMA at $0.5330.

Pyth Network (PYTH) price has been on a decline for just over a week now, recording lower highs and lower lows. This came as traders cashed in on the sharp uptrend that lasted between February 8 and 14. The network kicked off the council elections on Thursday, an event expected to influence price.

Also Read: Pyth Price Prediction: 10% correction likely for PYTH as bears make a comeback

PYTH Council Elections kick off

The PYTH Council Elections started on Thursday, February 22, offering community members a voice in the ecosystem. Specifically, the elections are meant to establish the members of the Pythian Council.

The Pyth Council election is a key milestone in Pyth's governance evolution. The largest First Party Oracle Network, is holding its inaugural council elections, marking a significant milestone in the project's journey towards a fully decentralized governance model.

With this, PYTH token holders have the opportunity to shape the network's future. This is because the election of the representatives who will form the Pythian Council will give community members a voice.

Those who of receive the largest number of votes would become members of the council, with fourteen off-chain nominations already being submitted from various stakeholders and strong partners of the Pyth Network.

Pyth Network price outlook

Despite a big picture bearish outlook, Pyth Network price looks poised for a 5% recovery as support due to the 25-day Exponential Moving Average (EMA) holds. The Relative Strength Index (RSI) is also rejecting the fall, pushing north to show rising momentum.

The Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD) are also in positive territory, adding credence to the bullish thesis.

Enhanced activity among the bulls could see Pyth Network price overcome the $0.6000 psychological level, 5% above current levels. In a highly bullish case, the gains could see PYTH fill the market range at $0.6863.

PYTH/USDT 1-day chart

On the other hand, if traders succumb to their profit appetite, Pyth Network price could slip below the 25-day EMA at $0.5330. A decisive candlestick close below this level would invalidate the bullish thesis.

An extended fall would plunge PYTH into the supply barrier turned bullish breaker between $0.4595 and $0.5003. A break and close below the midline of this order block at $0.481 would confirm the continuation of the downtrend.

Such a directional bias could see the Pyth Network price test the most important Fibonacci level, 61.8% at $0.4462.