PYTH price risks wiping out recent gains as profit taking mounts

Pyth Network price is down more than 11% in the past 24 hours as its token hovers around $0.16, and the market cap dips below $1 billion.

The Pyth Network (PYTH) price squeeze last week stood out among top gainers as the cryptocurrency market reacted to the Department of Commerce’s move to put U.S. economic data onchain.

However, as other altcoins slip amid broader crypto pullback, PYTH is trending as one of the big losers with a double digit dump in the past 24 hours. The token has experienced a notable dip in daily volume though, with this metric down 25% as price drops from highs of $0.25 on Aug. 29 to about $0.16 on Sept. 1. 

Pyth’s market cap has also dropped below $1 billion, currently around $935 million.

PYTH price decline

While the U.S. government’s decision to tap into Pyth Network and Chainlink to distribute macroeconomic data on blockchain helped bulls explode, traders are taking profits after PYTH reached its highest price in six months.

The decline mirrors the retreat for Bitcoin (BTC) and Ethereum (ETH), with BTC price dipping below a key psychological level to hit lows of $107,300.

Pyth Network’s declines have cut weekly gains to about 41%, while the steady sell-off threatens to wipe the upside seen when price went vertical from lows of $0.11 on Aug. 28. 

What next for PYTH price?

Although bulls can still target the $0.30 level they coveted as price jumped by more than 100%, analysts say the broader market’s downturn could extend into new lows in September. 

In a market outlook report on Monday, analysts at Bitfinex noted altcoins have stagnated after a recent uptick, and a dip into a cyclical floor is likely before prices explode again in the fourth quarter. 

“What is emerging is an Altcoin market cap that is stagnating, with any movement in alts signalling capital rotation rather than expansion. With ETF inflows seasonally muted and speculative excess flushed, September could mark the cyclical low point before structural drivers reassert for a Q4 recovery,” Bitifinex noted.

PYTH traded at an all-time peak of $1.20 in March, 2024.