Pyth Network's (PYTH) Price Has Dropped by Over 66% From Its Yearly High, and Technicals Point to Further Downside

As of the afternoon on May 21 (Asia time), Pyth (PYTH) was trading around $0.124, down about 3% in the past 24 hours.

Pyth Network’s native token, PYTH, has slid more than 66% from its yearly high, and technical indicators suggest that the token could continue to fall in the coming weeks.

As of the afternoon on Monday, May 21 (Asia time), PYTH was trading around $0.124, registering a 3% decline over the past 24 hours.

The latest price slide follows a scheduled token unlock on May 20, which released approximately 2.13 billion PYTH into circulation, valued at $275.11 million at the time.

The unlock, part of Pyth’s annual vesting cycle, constituted 58.7% of the circulating supply at the time and was distributed to early investors, contributors, and ecosystem participants.

Following the event, Pyth’s circulating supply has surged to nearly 5.75 billion tokens, roughly 57.5% of its maximum supply, which is capped at 10 billion. With this unlock, approximately 36% of the total supply is now in active circulation. The final two unlocks are scheduled for May 2026 and May 2027.

Large unlocks often unsettle investors, as they inject a significant volume of new tokens into the market without a matching rise in demand. This imbalance can exert downward pressure on prices.

Moreover, while not all recipients sell their tokens immediately, many tend to sell early, anticipating further price declines.

At the same time, unlocks are often part of a project’s long-term roadmap to distribute ownership more broadly and reward early contributors for their role in the project’s success. They usually mark key milestones in the development cycle.

Since Pyth’s unlock schedule was publicly disclosed well in advance, some of the impact may have already been factored into the token’s price, potentially reducing the risk of a sharp, panic-driven selloff.

PYTH price eyes drop to $0.10 support level

There is a risk that the PYTH price will continue downward in the next few weeks as a death cross pattern nears on the 4-hour/USDT chart.

A death cross forms when the 200-day and 50-day Exponential Moving Averages cross each other while both are still pointing downwards.

In Pyth Network’s case, the spread between the two moving averages has narrowed in the past few months. Its 200-day MA was at $0.1552, while the 50-day was at $0.1589.

A death cross often leads to a substantial decline over time. For example, the last time that PYTH price formed this pattern was in December last year, and the coin dropped by over 76%.

On top of that, the Supertrend indicator has also flashed a red signal, adding to the bearish outlook.

If the death cross is validated, PYTH could continue falling in the near term, with $0.10 being the next key level to watch as both a psychological support and its lowest point from April 11.

That said, PYTH’s Relative Strength Index is currently sitting at 30, which is right at the oversold zone. This might trigger a short-term relief rally as buyers look to buy the dip, but any recovery could be temporary unless the broader trend shifts.