Pyth Network is one of the best-performing cryptocurrencies at the moment. As of 10:47 AM GMT+3, Pyth Network was up 8.34% to trade at $0.495. The market cap at the time of writing was up by 8.12% to stand at $743.8 million.
The rise of Pyth Network comes amid growing speculation that this Oracle network could challenge Chainlink’s competitive position in the market.
One of the reasons why analysts see Pyth Network as a credible competitor to Chainlink is its ability to offer unprecedented transaction speeds without compromising on data accuracy. This is a big deal because scaling has been one of the critical challenges the cryptocurrency market has had to deal with for a long time.
Additionally, Pyth Network has the advantage of getting its financial data from some of the largest financial institutions in the world. This means the data that goes through the Pyth Network is precise. This, combined with high speeds, makes Pyth Network a credible Chainlink competitor.
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ℹ️ About Ionic Money
Ionic is a decentralized non-custodial money market protocol giving… pic.twitter.com/rh5sVqUbRN
— Pyth Network 🔮 (@PythNetwork) February 2, 2024
Even better is that, with the Pyth Network, updates to the network can happen in real-time. This is a big departure from Chainlink, whose network updates occur at specified intervals and are slow to implement. This makes Pyth Network more responsive to market changes, making it a more practical Oracle network.
Analysts are also betting big on Pyth Network’s cross-chain capabilities. Built into Pyth Network’s design is the ability to deal with more than 45 blockchains, ensuring that it can get the job done no what the blockchain that is running it.
Besides presenting credible competition to Chainlink, Pyth Network gained a significant boost this week when it was listed on Binance. Binance, being the largest crypto exchange in the world by volume, means more people now have access to Pyth Network. This could play into the demand and reflect in its price, as it has done in the last 24 hours.
Pyth Network’s recent listing on Binance and its credible challenge to Chainlink are the primary reasons for the current price rally.
Pyth Network Price Shows Consistent Price Increase Days After Binance Listing
Pyth Network’s price has consistently increased after the initial pump following the Binance listing.
While profit-taking post-listing saw Pyth Network lose some initial gains, selling volumes dried up at $0.478. This is now a short-term support level that is holding up quite well.
However, despite clear support established post-Binance listing, bulls still need to push the price through the $0.58 high it established on the day of listing. This is even more important now that the broader cryptocurrency market shows weakness.
Clearing through $0.58 could see Pyth Network make new highs and test $1 in the short term.
Pyth Network Price Prediction: Cautious Optimism
Pyth Network defying the broader market momentum post-news could give bullish signals to investors. It is this optimism that could see Pyth Network break the $0.58 resistance and go on to rally toward $1.
However, with Bitcoin now below $43k and the broader market mostly flat, Pyth Network could reverse in the short term.
If Pyth Bulls lose the current moment, two scenarios could play out in the day. One could be consolidation. Pyth Network could enter an accumulation phase between $0.58 and its current support level of $0.478. An upside break could follow such a move once bulls retake control of the broader crypto market.
On the other hand, if bears can take short-term control in the broader market, then Pyth Network buying volumes could thin out. Pyth Network could breach the $0.478 support level in such a scenario. If this happens, Pyth Network could trade at prices below $0.40 within the day.
The more likely scenario is a consolidation followed by a bullish breakout. That’s because, despite the low volumes in the market at the moment, there is no real case for a bullish scenario.
The market has shown to hold on pretty well following the Fed’s announcement that it was not cutting rates in March. This indicates that investors have complete confidence in the crypto market at current prices. Besides, with the Bitcoin halving drawing closer, bullish sentiment will continue, and high-potential cryptos like Pyth Network could draw the most attention.
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