Why PYTH crypto’s 10% price rally could extend beyond $0.089

PYTH Network [PYTH] has been in recovery following a bounce off from a zone of confluence between an EMA support and a demand zone at around $0.072. At the time of writing, PYTH prices had recorded a 10% daily surge, as the token made a continuation bullish push above its recent swing high of $0.089.

While the breakout is positive for the short-term outlook, it will be critical to hold on to the regained price level for any further rallies.

On the other hand, increasing Open Interest (OI), growing Funding Rates, and long position domination show that derivatives traders are expecting more gains. Can these market indicators help drive the PYTH rally further?

Rising OI signals growing derivatives exposure

The network’s OI has increased alongside PYTH’s price action by more than 10% to $17.28 million. The alignment and timing of the developments suggests that traders are adding exposure to the futures market rather than simply closing existing positions.

This combination can support a rally when fresh positions align with sustained buying pressure. However, OI measures outstanding contracts, not buying activity alone. However, rising OI could also increase liquidation risk if the market reverses.