Traders who chased last week’s PYTH squeeze are waking up to a hard reversal: the token has dumped more than 11% in 24 hours to ~$0.16, daily volume is down roughly 25%, and market cap has slipped under $1B. After a +100% rip to $0.25 on headlines about U.S. economic data going onchain via Pyth and Chainlink, aggressive profit-taking and a broader altcoin cool-off now threaten to unwind a big chunk of those gains. Is this a buy-the-dip or the start of a deeper reset?

What’s happening now

PYTH’s vertical move from ~$0.11 (Aug 28) to $0.25 (Aug 29) faded as risk appetite softened across alts and BTC/ETH pulled back. The momentum break coincides with thinner liquidity and falling activity, a classic post-squeeze hangover where late longs get trapped and early buyers de-risk into strength. Weekly gains are still positive (~41%), but the path of least resistance is lower unless bulls quickly reclaim key levels.

Why it matters to traders

- Post-squeeze retracements often test the origin of the move to discover real demand. - Bitfinex analysts flag a potential September cyclical low for alts amid muted ETF inflows and capital rotation, before structural drivers possibly reassert into Q4. - Translation: near-term chop and downside risk, followed by higher-quality entries if/when breadth improves.

Key levels and scenarios

• Immediate support: $0.16 (current pivot). Lose it with rising sell volume and a retest of $0.14–$0.15 is likely.
• Deeper support: $0.11 (squeeze origin). A full round-trip isn’t unusual if momentum fully unwinds.
• Resistance: $0.20 (mid-range), $0.25 (spike high), then $0.30 (bulls’ next target if trend resumes).
• Bull case: Reclaim/hold $0.18–$0.20 on increasing spot volume, with funding normalizing and open interest rising without crowding.
• Bear case: Failure at $0.18–$0.20 plus negative breadth across alts opens a path toward $0.14 and possibly $0.11.

Actionable game plan

• Wait for a 4H close back above $0.18 with rising spot-led volume to confirm demand before considering longs.
• If trading the range, use OCO bracket orders and keep position size modest; volatility and liquidity can shift quickly.
• Set clear invalidation (e.g., below $0.15 if entering on a reclaim) to protect capital; avoid knife-catching if $0.16 fails on heavy sell pressure.
• Track funding, OI, and spot vs. perp leads; look for spot leading up, perps lagging, and funding near flat for healthier upside.
• Monitor catalysts: further onchain data integrations, any token unlocks/supply events, and broader market breadth (TOTAL2, BTC dominance).

Risk checklist

• Liquidity risk: Rapid slippage post-squeeze; use limit orders in size.
• Event risk: Negative macro surprises can amplify downside in high-beta alts.
• Rotation risk: Capital shifting within alts can mute PYTH-specific follow-through even on good news.
• Supply overhang: Watch for unlocks or large holder distribution on-chain.

Bottom line

PYTH is back at a decision zone. Without a swift reclaim of $0.18–$0.20 on real demand, the market can probe lower toward $0.14–$0.11. Trade level-to-level, let volume confirm the move, and keep risk tight. The potential Q4 tailwind is interesting—but patience and discipline here are the edge.

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