PYTH Token and Derivatives Market Hit All-Time Lows
Record Low Interest and Price for PYTH
The PYTH token, the base token of the PYTH Network oracle service provider, has seen a significant decline in its derivatives market. The total open interest for PYTH derivatives has dropped to an all-time low.
With the token price closing at an all-time low of $0.22 during a recent trading session, market sentiment has been bearish. Santiment data indicates that PYTH’s outstanding interest reached a peak of $113 million before fluctuating and hitting new lows.
Market Liquidations and Price Pressures
The recent downturn in cryptocurrency markets led to a mass liquidation of PYTH derivatives positions, causing open interest to plummet to a record low of $19 million. This sharp decline in open interest can be attributed to traders closing their positions amidst a general market decline.
Furthermore, double-digit price drops over the past week have resulted in several long positions being liquidated, with over $1.8 million in PYTH purchases and liquidations recorded in the past seven days.
Price Forecast and Market Sentiment
As market sentiment remains negative, traders are increasingly taking short positions on PYTH. The coin’s relative strength index (RSI) is at 40.35, indicating a bearish trend with selling pressure surpassing buying activity.
Additionally, the Chaikin Fund Flow (CMF) is below the zero line at -0.01, signaling market weakness and potential further price declines. If demand continues to weaken and capital outflows persist, PYTH’s price could revisit its all-time low of $0.22.
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