【$PYTH Signal】Hold Cash Waiting for Key Support Confirmation

$PYTH is testing recent low support, but the overall structure remains in a downtrend channel with insufficient bullish momentum.

🎯 Direction: Hold Cash

Market Analysis: The 4H candles have been consecutively bearish, with the price breaking below EMA20 (0.0447) and EMA50 (0.0470), confirming a short-term trend weakening. The latest 4H candle shows increased selling volume; although the buy ratio (51%) has rebounded, it is passive buying during a decline, not active buying.

Logical Core: The key contradiction is that the funding rate (-0.0019%) is negative and open interest (OI) remains stable. This rules out large-scale dumping or short squeeze scenarios, resembling a bearish decline driven by lack of bullish confidence. RSI (33.29) has entered oversold territory but shows no divergence; simply being oversold is not a reason to go long.

Deep order book shows a significant ask wall in the 0.0427-0.0428 range, forming recent resistance. Although there are dense buy orders near 0.0425 below, the price is very close, and support strength needs to be tested. ATR (0.0013) indicates moderate volatility, with no signs of panic selling.

Trading Plan: The current price is in a ambiguous zone. Lack of structural support and stable (not rising) OI weaken the case for long positions; short positions face potential rebound risks under negative funding rates, and there is no "high rate + decreasing OI + bearish divergence" confluence for shorting.

Risk Control Perspective: The best strategy is to hold cash and wait. If the price rebounds with volume and stabilizes above 0.0440 (former support turned resistance), re-evaluate bullish opportunities. If it breaks below 0.0420 with rising OI (indicating short covering), consider shorting with the trend. Otherwise, stay on the sidelines.

Trade 👇 $PYTH

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