The recent price action on PYTH has caught the attention of technical traders, and for good reason. After a prolonged downtrend stretching back to late 2023, the oracle protocol’s token has finally broken out of a well-defined descending channel. This move comes after months of lower highs and lower lows, and it is now being closely watched for validation through a potential retest of the breakout zone. If successful, technical projections of PYTH suggest a sharp 2x rally could be on the table.
The chart from TradingView shows a clear technical pattern playing out. PYTH had been stuck in a falling wedge or descending channel since December 2023, experiencing relentless selling pressure that pushed the price from above $0.50 down to just above $0.10 by mid-April 2025. However, since bottoming out, the price has carved out a rounded base, showing strength in both volume and price stability just above the $0.10 level.
Clean Breakout Presents Itself for PYTH
What makes the current setup great is the clean breakout above the descending trendline resistance in early May. The token moved past the channel’s upper boundary and consolidated in a horizontal range between $0.13 and $0.15. This zone marks a critical level of former resistance that may be turning into support. So far, the price has not fallen back below it, suggesting bulls are defending this new base aggressively.
The vertical blue arrow in the chart highlights the potential measured move target from the breakout. Using the height of the previous range, from the $0.13 base to the $0.30 resistance level, as a gauge, analysts are calling for a price projection near the $0.30 mark. This would represent a roughly 134% gain from the current level of around $0.14.
However, for this bullish thesis to materialize, PYTH needs to pass one final test. A successful retest of the red breakout zone would confirm that prior resistance has truly flipped into support. If the price dips slightly into the $0.13 range and is met with strong buying interest, it will help the next leg up. Without this confirmation, the move risks becoming a fakeout.
The Role of Market Sentiment in a Potential 2x Rally
Momentum indicators and market sentiment will also play a role. PYTH’s initial breakout came amid a broader bounce in altcoins, and its correlation with the rest of the market remains high. Should Bitcoin continue consolidating or push higher, it would further support the breakout thesis for PYTH. Conversely, a pullback in major cryptocurrencies could challenge the setup.
All eyes are now on the red zone. Traders who missed the initial breakout may see this retest as a second chance to enter before the projected move to $0.30. However, caution remains warranted until confirmation arrives. A failure to hold above $0.13 would be a warning sign, signaling potential weakness or a return to the prior range.
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