PYTH Price Pulls Back Toward Support as Traders Watch for Bullish Rebound

The PYTH price is in decline mode, which is not something many are happy about, because no investor wants their gains to reduce when such a strong spike came last week. But the experts find PYTH is undergoing a healthy correction after rallying sharply in late August. 

Since, after a 130% surge to $0.26, the token has now cooled down, as revealed by the RSI tool, and is now testing lower support levels. Despite the pullback, optimism remains as new on-chain developments that might ignite growth in adoption hint at potential upside in the coming sessions, which could be much bigger than the recent rally.

PYTH Price Retreats After Late August Surge

The PYTH price today has dropped to the $0.16 region, down 36% from its recent peak of $0.26. This pullback has pushed its market capitalization below $1 billion, settling around $933.80 million. 

On the PYTH Network price chart, the token is retracing toward the 20-day EMA band, signaling a pause after an overheated rally.

From a technical perspective, the PYTH price USD shows signs of consolidation. The Relative Strength Index (RSI) reflects a cool-down phase after signaling overbought levels in August. Other indicators are also mirroring this correction on the PYTH crypto daily chart. 

Currently, the price is approaching the $0.14 support area, where renewed bullish demand could emerge. A sustained defense of this zone may provide the foundation for a fresh rally, possibly retesting $0.26 and higher.

Fundamental Optimism From On-Chain Data Push

While the price consolidates, sentiment in the community is greatly buoyed by a recent development. The U.S. Department of Commerce announced that US key economic data, even including the GDP figures, will be published directly on-chain. This is a very bold and big step coming from US government.

Through PYTH, this data will be made available across more than 100 blockchains. The move is being viewed as a significant step toward transparency and innovation, giving markets access to real-time information for pricing and rate setting. 

Such adoption bolsters the PYTH price forecast, as it highlights the network’s relevance in bridging traditional data with blockchain ecosystems.