MYX Finance (MYX) saw gains of 8% over the past 24 hours. Some analysts attributed the rally to a short-term breakout beyond key technical and psychological resistance at $3.
In a recent report from AMBCrypto, MYX’s exit from a descending channel was described. Combined with high trading volume and a brief rise in open interest, a price target of $3.45 was expected.
This goal was achieved, and more. On Monday, December 15, the price of the MYX Finance token reached a local high of $3.9. The $3.45 level could act as support and help start the next rally.
Decode mixed MYX signals
Source: MYX/USDT on TradingView
The short-term supply zone of $3.20 and the high of $3.45 have been marked as the levels to beat to reverse the structure bullishly. This happened and the high trading volume over the past five days confirmed the authenticity of the bullish breakout.
Although the long-term trend is not yet strongly bullish, the last six weeks have seen significant progress. At the time of writing, OBV was slowly climbing, the structure remained consistently bullish, and the moving averages highlighted the change in momentum.
Source: Coinalyse
On the other hand, the last four days have also seen a steady decline in open interest. Additionally, over the past 36 hours, the funding rate has been deeply negative. These were signs that traders were exiting their positions and the market was favoring short positions, depending on the funding rate.
It showed that the recent rally was a short squeeze, which carries the risk of a rapid reversal. Despite the increased volume in the spot market, traders should be wary of short-term volatility.
The short squeeze scenario
Data from Coinalyze revealed that MYX’s rally may not be sustainable. The 24-hour long-to-short ratio was 0.96, according to CoinGlass. This could be a sign that the rally beyond $3.7 was aimed at chasing short positions.
Trader Call to Action – Trust the Price Action
The D1 period highlighted a stable bullish structure. The break beyond $3.45 was encouraging, especially at a time when Bitcoin (BTC) was posting losses. The $3.33 to $3.52 area is a short-term demand zone for the altcoin.
A price decline below $3.26 would invalidate the short-term bullish setup. On the other hand, a bounce from the $3.45 area towards the next resistance at $4.2 still seems more likely than a bearish reversal.
Final Thoughts
- MYX Finance has shown mixed signals when evaluating futures data and price action over different time frames.
- Although the recent move may have been a short squeeze, traders could maintain their bullish bias and consider buying between $3.4 and $3.5.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
