Key takeaways
Why did MYX Finance retrace all the gains made in September?
Trading volume soared during last month’s rally, but it faded when MYX fell below $10, and MYX was forced to give up almost all of the gains made.
Can MYX rally to $19 once again?
An increase in trading volume above daily average levels would likely precede such a rally. For now, with altcoin market sentiment extremely weak, a recovery seems unlikely.
MYX Finance (MYX) was trading at $2.93 at the time of writing. The native token of the decentralized exchange specializing in perpetual contracts rebounded by 1,878% in less than 10 days in September.
Retracement deepens after September peak
Source: MYX/USDT on TradingView
This rally took prices from $0.96 to $19, but since then a deep retracement has occurred.
Market participants were hoping that key Fibonacci retracement levels would be respected as support. For a while, the 78.6% retracement level at $4.82 served as support.
Bitcoin’s (BTC) fall from $126,000 to $102,000 saw MYX retrace the entire September rally, plunging to a low of $0.886 before rebounding to a local short-term high of $4.33.
Additionally, the daily chart showed that OBV was slowly sliding lower, showing selling pressure. Traders should watch out for sustained demand and an uptrend in OBV to support the idea of a price recovery.
Additionally, the DEX’s 24-hour trading volume stood at $260 million at the time of writing. This is a healthy number, although it is a notable drop from late August levels of around $330 million.
Short-term expectations for MYX
The recent volatility stems in part from last Friday’s altcoin selloff. If $4.33 swings towards support, MYX could regain strength in the near term. Until then, the market structure on the daily and 4-hour charts remained bearish.
Source: MYX/USDT on TradingView
We need to see indications that buyers are in control before moving to a bullish outlook. This would happen when MYX rebounds past the high of $5.6, where last week’s bearish impulse originated.
Over the past week, the $2.5 support zone has been defended.
OBV was still in a downtrend, but it has slowed down over the past three days. The MACD has moved back towards the zero line. A bullish crossover in the MACD would be a first indication of a change in momentum.
A Bitcoin rally towards $114,000 may also reverse MYX’s bullish sentiment in the near term.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
