PYTH price forms support at $0.05 on Robinhood listing, potential 65% upside in play

PYTH price shot up nearly over 17% shortly after securing a listing on Robinhood. It held the $0.05 support and appears to be shaping a double bottom pattern that suggests major upside this week.

According to data from crypto.news, Pyth Network (PYTH) rallied 17.5% to an intraday high of $0.067 late Tuesday, Jan. 27, shortly after popular U.S.-based crypto trading platform Robinhood confirmed listing the token. Investors from across the country, including New York, can now access the oracle token directly through the app.

A listing on a popular exchange such as Robinhood provides PYTH exposure to millions of retail investors, bolstering the credibility of the project through a rigorous vetting process that signals institutional-grade legitimacy. This validation, combined with increased liquidity, could act as a catalyst for long term growth of the altcoin by lowering the barrier to entry for the general public.

Data from Nansen shows whales took notice of the listing and have moved in to accumulate. These deep-pocketed investors have increased their holdings by 6.6% within hours of the listing news and currently hold onto 42.68 million PYTH tokens. This could act as another bullish signal, drawing in retail investors who often view such moves as further validation of the token’s potential.

Demand from derivative traders was also evident with a spike in leveraged trading. According to Coinglass data, PYTH futures open interest has increased by 18% over the past 24 hours while its weighted funding rate has turned negative, a scenario that could trigger a short squeeze should bulls continue to push the token’s price higher.

On the daily chart, the PYTH price is forming the second bottom of a double bottom pattern after managing to defend the $0.05 support level earlier. A double bottom pattern is seen as one of the most popular bullish reversal patterns in technical analysis.

A look at the MACD indicator shows a bullish crossover taking place while the RSI has moved higher from near oversold levels back close to the neutral threshold, suggesting bears are losing control to the bulls.

For now, the neckline of the double bottom formed at $0.074 would be the key resistance to keep an eye on. A break above this level would confirm the double bottom pattern and would also mean a breakout from another descending trendline that had been acting as resistance for its price action since September last year.

Upon breakout, increased buying pressure could ignite a swift rally to $0.10, which marks the 23.8% Fibonacci retracement level and also the projected target based on the pattern breakout. 

At press time, the hype surrounding the PYTH listing seems to have calmed down a bit as traders started booking profits and the token settled around $0.061, which puts the projected target nearly 65% higher.