Pyth Network Price Forecast: PYTH bulls eye 10% bounce at key support

Pyth Network (PYTH) price has been trending lower since December 7, but the recent retest of a key support level opens up the path for a potential bounce. 

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Pyth Network price at critical levels

Pyth Network price set a local top at $0.522 on December 7 and has since shed nearly 30% and formed a local bottom at $0.371. Although PYTH dipped below the $0.380 support level, its recovery now faces a tough decision. 

A quick surge in buying pressure will do two things: a breakout above the declining trend line connecting swing highs since December 8 and create a shift in market structure favoring bulls. While this would be promising for bulls, only a 10% upswing is likely in the short term since PYTH will face a key hurdle at $0.426. 

A decisive four-hour candlestick close above $0.426 that flips it into a support level will allow Pyth Network price to rally another 22% and tag the $0.520 barrier. In total, this move would constitute a 35% gain from the current price level of $0.385. 

While it is unsure if Pyth Network price can overcome this level considering the current market conditions. But if it does, it would allow PYTH to overcome the current all-time high at $0.557 and set up a new one.

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PYTH/USDT 4-hour chart

While the bullish outlook for Pyth Network price makes sense, it is contingent on buyers defending the $0.380 support level. A breakdown of this barrier followed by a four-hour candlestick close that flips $0.356 into a resistance level will invalidate the bullish thesis. 

In such a case, Pyth Network price could drop 18% and revisit the $0.290 support level. 

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