Can PYTH Price Head For a recovery Amid Improved Sentiments The weighted sentiment curve has entered bullish territory indicating improved investors sentiments. A bullish crossover between the RSI and 14 day SMA line was observed over the daily timeframe.
Despite the recent shift in the sentiment in the broader market, Pyth Network has underperformed against the other altcoins. The overall crypto market capitalization has surpassed $2 trillion, indicating a renewed investors confidence.
However, the crypto has started gaining traction and getting ready to outperform its peers. At the time of writing, PYTH was exchanging hands close to $0.28, recording an intraday gain of 4.97%.
Moreover, the recent sessions saw a significant shift in the sentiment and development metrics which could bring back momentum in PYTH price. Let's analyze and try to obtain a clear picture of where PYTH could lead in September. Weighted Sentiment Curve Enters Bullish Territory As per Santiment, an on-chain analytics provider, the positive sentiments have surged higher due to which the weighted sentiment has improved. The weighted sentiment curve made its way to the bullish territory surpassing the zero line indicating the renewed investors confidence.
The weighted sentiment signifies the overall bias of investors about an asset on a combined basis. As per the analysis, the weighted sentiment has shifted to the bullish side suggesting a positive outlook for Pyth Network.
The development activity and developers activity count shows the recent updates and changes occurring in PYTH crypto. Looking at the charts, it was observed that the development activity and the developer count have been rising since mid August and have reached a three month high value.
A positive shift in the development metrics often indicates a similar development in the asset's price as well.
Also, the daily transaction volume dropped by 5.7% to $24.3 Million a day. out of total 9.99 Billion PYTH tokens, nearly 34% i.e. 3.6 Billion tokens are currently in circulation. The volume to market cap ratio was 2.35% suggesting low volatility. Can PYTH Price Break Out Of A Correction Phase This Month? From a technical indicator's point of view PYTH price has surpassed the 20 day EMA suggesting a positive outlook in the short term. However, the price needs to surpass two major hurdles of 50 and 200 day EMAs in order to completely shift on the bullish side.
As of now, the price lags 200 day EMA by 37% indicating the prevailing bearish trend. Moreover, the daily chart highlights the formation of a double bottom pattern which could trigger a buying in the short term.
A breakout above the neckline of the double bottom pattern could validate a positive shift in the trend and price may look to conquer higher levels thereafter. However, it requires the strong presence of bulls at the lower levels.
The $0.4 level is crucial for both the bulls and bears. A successful breakout above the level could shift the trend in the buyers favor. whereas, a rejection from the level could further invite sellers to lead the trend.
At the time of writing, the RSI line was placed at 52.8 points and that of the 14 day SMA line was at 43.4 points. A bullish crossover between the RSI and 14 day SMA line was observed indicating a bullish continuation in the short term.
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