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Pyth Network [$PYTH] continues to surge a few days after partnering with the U.S. Commerce Department to release economic data on-chain. $PYTH is up more than 12% in the past 24 hours, recovering all its gains lost during the retest of its breakout.
On-chain data and technical outlook suggest that this $PYTH trend may be at its initial stage. Is the statement true?
$PYTH’s bullish momentum returns
Looking at the charts, $PYTH is trading above a descending trend channel following a successful retest at the $0.045 zone. This pattern has existed since the beginning of 2026 and could be the bottom of a bearish market structure.
However, for a continuation of a bigger rally, bulls must break higher levels, with the most immediate being $0.0576.
Interestingly, the SMI reading is back to the neutral level, indicating a return of bullish momentum. The RSI divergence reinforces this observation, showing an overbought reading of 70.
Since the double-digit gains follow a retest of an eight-month consolidation breakout, it could suggest the rally may be in its early stages.
The altcoin’s short-term supply zone that could challenge bulls is at $0.060, $0.070, and $0.080 at the origin of the channel. They define $PYTH‘s downside risk.
But are market participants also showing that these gains could be the beginning of a bigger rally?
How are whales vs. retailers positioned?
More data from CryptoQuant showed that whales had been stacking up big orders since its price hit $0.04 from a low of $0.03. Usually, whales accumulate at extreme market bottoms.
On the other hand, spot retail activity through trading frequency indicates that only a few retailers are buying. From historical data, retail activity spiked at market peaks, and their absence supports the idea that the uptrend is just beginning.
For context, $PYTH dropped in two instances when retailers became many or too many. For instance, $PYTH at $1 fell to $0.23, and at the $0.20 zone, its price declined to $0.03.
Again, the liquidation heatmap showed that there were twice as many leveraged long orders as short orders. That is, Cumulative Long Liquidation Leverage of $1.65 million against $727.54K in shorts over the seven days across Binance, OKX, and Bybit.
The largest long cluster across these exchanges is at $0.0513, characterized by 25x and 50x leverage.
Altogether, leveraged orders, whale positioning, and a bullish market structure could help keep $PYTH in an uptrend. Still, traders need to approach trading the token with caution.
Final Summary
- Pyth Network rallied 12% in the past 24 hours as whales continued to stack big leveraged orders.
- $PYTH had a successful retest of the channel breakout as bullish momentum returned.