PYTH Breaks Out of Descending Channel, Targeting a 2x Rally

The recent price action on PYTH has caught the attention of technical traders, and for good reason.

Recent price action on PYTH has caught the attention of technical traders, and for good reason. After a prolonged downtrend stretching back to late 2023, the oracle protocol’s token has finally broken out of a well-defined descending channel.

This move comes after months of lower highs and lower lows, and it is now being closely watched for validation through a potential retest of the breakout zone. If successful, technical projections of PYTH suggest a sharp 2x rally could be on the table.

The chart from TradingView shows a clear technical pattern playing out. PYTH had been stuck in a falling wedge or descending channel since December 2023, experiencing relentless selling pressure that pushed the price from above $0.50 down to just above $0.10 by mid-April 2025.

However, since bottoming out, the price has carved out a rounded base, showing strength in both volume and price stability just above the $0.10 level. This signals that sellers are becoming exhausted, while buyers are stepping in to defend this key zone.

Clean Breakout Presents Itself For PYTH

What makes the current setup great is the clean breakout above the descending trendline resistance in early May. The token moved past the channel’s upper boundary and consolidated in a horizontal range between $0.13 and $0.15. This zone marks a critical level of former resistance that may be turning into support.

So far, the price has not fallen back below it, suggesting bulls are defending this new base aggressively. This consolidation phase also presents an opportunity for traders to spot entries on pullbacks.

The vertical blue arrow in the chart highlights the potential measured move target from the breakout. Using the height of the previous range, from the $0.13 base to the $0.30 resistance level, as a gauge, analysts are calling for a price projection near the $0.30 mark. This would represent a roughly 134% gain from the current level of around $0.14.

However, for this bullish thesis to materialize, PYTH needs to pass one final test. A successful retest of the red breakout zone would confirm that prior resistance has truly flipped into support.

If the price dips slightly into the $0.13 range and is met with strong buying interest, it will help the next leg up. This scenario plays out if sellers emerge on a rise to $0.15, leading to a retest of the lower support.

But if sellers return as soon as the price tries to move lower, it signals weakness, making a move to the downside more likely. In this case, traders may unwind their positions, leading to further selling pressure and a return to the prior range.

The Role Of Market Sentiment In A Potential 2x Rally

Momentum indicators and market sentiment will also play a role. PYTH’s initial breakout came amid a broader bounce in altcoins, and its correlation with the rest of the market remains high.

Should Bitcoin continue consolidating or push higher, it would further support the breakout thesis for PYTH. Conversely, a pullback in major cryptocurrencies could challenge the setup.

Overall, the technical picture for PYTH is bullish, with the potential for a sharp 2x rally emerging if the breakout zone holds and the price manages to retest it successfully.

However, traders are advised to use caution and wait for confirmation before entering any trades. They should also keep an eye on momentum indicators and market sentiment, which could provide further clues about the direction of the trend.

This analysis has been written by Benzinga andをもとにしています。