- PYTH’s social metrics soared after Binance made the announcement.
- A few market indicators suggested that the price drop might continue.
Pyth Network [PYTH] recently came into the limelight thanks to the world’s largest crypto exchange. The big news was that Binance announced plans to list PYTH on the exchange, sparking excitement among crypto investors as such episodes are often followed by bull rallies.
Will Binance help Pyth?
As per the official announcement, PYTH will be opened for trading on the 3rd of February at 12 UTC on Binance. It will be traded in the pairs PYTH/BTC, PYTH/USDT, PYTH/FDUSD, and PYTH/TRY.
👉 https://t.co/a1MYNiAKbA pic.twitter.com/wzU5eOJPq7
— Binance (@binance) February 2, 2024
Thanks to this announcement, the token’s social metrics surged substantially in the last few days. AMBCrypto’s look at Santiment’s data revealed that PYTH’s social volume spiked on the 2nd of February 2024.
Apart from that, bullish sentiment around the token also increased, as evident from the rise in its weighted sentiment.
The rise in bullish sentiment was not a surprise, as listings on large exchanges such as Binance often trigger price upticks. In fact, CoinMarketCap’s data revealed PYTH was up by more than 19% in the last seven days.
However, things didn’t go as expected, as PYTH’s daily chart turned red. In the last 24 hours alone, Pyth Network was down by 4.8%. At the time of writing, PYTH was trading at $0.4645 with a market capitalization of over $696 million.
A closer look at PYTH’s state
To understand whether Binance’s listing will actually help PYTH’s value surge further, AMBCrypto planned to check its daily chart. Our analysis revealed that the chances of a sideways price movement were high in the short term.
This seemed to be the case as Pyth Network’s Money Flow Index (MFI) went sideways.
A similar trend was also noted in terms of its Relative Strength Index (RSI). On top of that, PYTH’s MACD displayed a bearish crossover, which can cause a further dip in the token’s price.
Nonetheless, its Chaikin Money Flow (CMF) looked bullish as it registered a slight uptick above the neutral mark.
Realistic or not, here’s PYTH’s market cap in BTC terms
Things looked optimistic in the derivatives market for PYTH. The token’s open interest registered a downtrend along with its price.
Whenever open interest drops, it suggests that there could be a trend reversal. Additionally, its funding rate remained green, meaning that futures investors were actively buying PYTH.