TL;DRPYTH gains 91% after being selected by the US government for blockchain-based data distribution.MACD bullish divergence signals a potential uptrend as the price breaks out following a major announcement.Despite the rally, smart money offloads $166K in PYTH, indicating profit-taking after a sharp price move.Pyth Network Chosen to Help Distribute US Economic DataOn August 28, the US Department of Commerce announced it would begin releasing official economic data on blockchain networks. Pyth Network was selected to assist in verifying and distributing this data. Chainlink will also take part in the process.The data, including the US gross domestic product (GDP), is now live on several blockchains such as Bitcoin, Ethereum, Solana, Avalanche, Polygon, and others. Coinbase, Kraken, and Gemini will be involved in publishing the data. US Secretary of Commerce Howard Lutnick stated,“We are making America’s economic truth immutable and globally accessible like never before.”PYTH Price Rallies After the NewsFollowing the announcement, the price of PYTH jumped by over 90% within 24 hours, reaching $0.22. The token’s 7-day gain now stands at over 95%, and trading volume during the same 24-hour period surpassed $2.1 billion.Meanwhile, technical data shows a pattern known as bullish divergence on the MACD indicator. This occurs when the price continues to fall while the momentum starts to rise. In PYTH’s case, the price formed lower lows, while MACD made higher lows. After this pattern formed, PYTH broke above its downtrend and started moving higher.Source: XThe MACD line also crossed above the signal line, and the histogram flipped positive. This is often used by traders to confirm building momentum. Analyst Javon Marks said this could be an early move in a wider trend. He added,“Prices could push another +173% into the $0.50s…”Derivatives Data Signals a Market ShiftAccording to CryptoQuant, futures market data for PYTH showed consistent sell pressure from late July to mid-August. This is shown in the Cumulative Volume Delta (CVD), which was dominated by taker sell orders during that period.Source: CryptoQuantFrom August 20 onward, the data turned neutral. Then, on August 28, the CVD flipped strongly to the buy side. That spike in buying activity happened on the same day the government partnership was announced. It also came with a sharp price increase, showing a direct reaction from traders.Despite the surge, data from Stalkchain shows that smart money has been selling. In the last 24 hours, PYTH was the most sold token, with over $166,000 in recorded sales.Consequently, this activity suggests some investors may be securing profits after the rapid price move. While PYTH has gained attention from the public and institutions, some large holders are adjusting their positions after the rally.The post PYTH Skyrockets 91% After Securing US Government On-Chain Data Role appeared first on CryptoPotato.