After a challenging start to the year, the cryptocurrency market is seeing signs of recovery, with Ethereum’s price rebounding by 12% in the past week. This positive momentum has been observed across various altcoins as well. 2023 has seen Pyth Network (PYTH) experience significant losses. However, PYTH prices have surged nearly 20% in just over a week, with its year-to-date losses now reduced to around 53%. The rise is fueled by a powerful harmonic pattern on the daily chart using Heikin Ashi candles. This suggests that the recovery may not be over just yet. ,
On the daily chart, we are seeing a Bearish Cypher pattern forming, which often signals a bullish continuation and price movement toward specific reversal zones.
The pattern began at point X, a rejection from the February 10 high near $0.2635. From there, prices plummeted to point A, rallied to point B, followed by a sharp correction to point C, which bottomed out around $0.1057 on April 7—a significant 59% drop from X.
The price is now moving higher to form the final leg of the pattern CD. If this pattern plays out as expected, PYTH could reach point D, located near the 78.6% Fibonacci retracement level of the X to C move—around $0.2299. This suggests an upside potential of approximately 42% from current price levels.
PYTH is now facing a key resistance zone, which may lead some traders to take profits, but could also serve as a launchpad for further growth if broken convincingly. Before reaching the final Cypher target, PYTH must overcome intermediate resistance at $0.2034, which coincides with the 0.618 Fibonacci retracement.
A strong push above this level could accelerate PYTH’s upward momentum towards $0.2299.
On a technical front, the MACD indicator is also turning positive, indicating building upward momentum. As long as this pattern holds, the short-term outlook for PYTH remains optimistic.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.