Here’s Why Pyth Network (PYTH) Price Is Pumping

The price of Pyth Network (PYTH) has surged, but a looming token unlock could stall the rally.

Pyth's integration with Sonic Labs highlights speed and scalability.

At the same time, two new tokens, $OS (Origin Protocol) and $GOGLZ (Sonic Labs), have gone live using Pyth's oracles, expanding its real-world use cases.

Pyth is now offering ultra-low-latency price feeds to dApps across Sonic and 100+ connected blockchains.

This move showcases Pyth's commitment to providing efficient and scalable solutions for the DeFi ecosystem.

However, some analysts are cautioning against getting too carried away by the PYTH pump.

Taking to X, one analyst, ArunCrypto, shared a breakdown of why he sees a potential 40% crash in PYTH.

"PYTH is about to unlock $400 MILLION worth of tokens in 10 days... This could trigger a massive sell-off," he said.

According to the analyst, the current price of PYTH is $0.1687, with a market cap of $600M and circulating supply of 3.6B.

The total amount of tokens to be unlocked is $400M, which equates to approximately 2.37B tokens.

"I'm planning a short trade with an entry between $0.175-$0.18, target $0.11-$0.12 to sell-off after the expected token unlock. FUD around token unlocks usually begins 3-4 days in advance. The biggest pressure comes from team/investor token releases, which we have here," the analyst explained.

Sharing his trade plan, he said that he'll be entering a short trade on PYTH.

"My entry is flexible, but ideally aiming for $0.175-$0.18. I'll be setting a relatively tight target of $0.11-$0.12, considering the swift sell-off potential. I'm planning to exit the trade fully around $0.11-$0.12, aiming to capitalize on the expected selloff after the token unlock.

"I'll be keeping an eye out for any FUD that usually starts 3-4 days in advance of the unlock event. Typically, the biggest sell-off pressure comes when team or investor tokens are being released, which is the case here.

"I'll also be monitoring the market closely for any signs of demand drying up or selling pressure increasing. This will help me to adjust my entry and exit points accordingly," Arun concluded.