Pyth Network (PYTH) price has recently seen a significant decline, falling 20% from its peak of $0.6863. However, a 5% increase is expected in the market as a sign of recovery. This downward trend began with a profit-taking tendency among investors, particularly between February 8-14, following a sharp uptrend. Yet, the critical council elections for PYTH Network triggered this downward trend. These elections, which started on Thursday, February 22, are conducted to determine the members of the Pythian Council and are seen as a step towards the project’s decentralized governance model.
Council Election Metrics for PYTH Network
PYTH token holders play a decisive role in these elections to shape the future of the network. With the establishment of the Pythian Council, community members will participate in decision-making processes and influence the direction of the project. This is a crucial step as having community members with a say in the network’s future is a critical element for the project’s long-term success.
According to technical analysis, despite currently being in a downtrend, PYTH price appears ready for a 5% recovery with the support of the 25-day Exponential Moving Average (EMA). Indicators suggest the end of the downtrend; the Relative Strength Index (RSI) shows increasing momentum, while the Awesome Oscillator (AO) is in the negative zone. The Moving Average Convergence Divergence (MACD) is in the positive zone, confirming the potential for an uptrend. In this case, an expectation of a rise in terms of metrics can be considered.
What Factors Could Hinder the Rise?
There are also factors that could potentially hinder the rise of the Pyth Network Altcoin. In particular, if PYTH price falls below the 25-day EMA to the $0.5330 level, it could invalidate the bullish expectations. In this case, a continuation of the downtrend is expected. Additionally, the price moving towards a supply barrier between $0.4595 and $0.5003 is also likely.
At this point, I believe that in addition to the short-term fluctuations in the price of the cryptocurrency Pyth Network, the long-term trend is also significant. I view the adoption of the community-based governance model as a positive step for the sustainability and success of the project. Nevertheless, for investors, monitoring the levels mentioned above will be beneficial in terms of earning profits.
