MYX Finance - the price has dropped sharply, falling below the critical $5.00 level and showing an increasing risk of decline.
The decline is due to several periods of weak sentiment. Selling pressure intensified as MYX failed to maintain a crucial intraday support level. The market structure now reflects a bearish shift.
MYX traders are becoming bearish
The latest downturn has increased the number of short positions among MYX traders. Financing rate data indicates that short contracts dominate in the futures market. A negative financing rate reflects a bearish conviction, as traders position themselves expecting the price of MYX Finance to continue decreasing.
A high short amount often indicates expectations of a deeper correction. The market anticipates a price drop, which can be exploited through leveraged positions. An imbalance in the derivatives market can increase volatility and strengthen selling pressure if sales accelerate further.
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The Money Flow Index or MFI indicates strong selling pressure on the MYX price, reinforcing the ongoing corrective movement. The indicator has declined in recent days, reflecting continuous outflows of capital. The weakness reinforces that bearish sentiment control continues in the short term.
Although the MFI is approaching the overbought threshold, it has not yet fallen below the 20.0 level. A clear movement below this level typically indicates an overload of sales, where buyers may activate at discounted prices. If buying intensifies, MYX may attempt a technical rebound.
The MYX price has dropped 23% in the last 24 hours and is now trading at $4.87 after falling below $5.00. The token is now breaking out of a descending ascending wedge pattern, which often anticipates sharp corrective moves when the support level fails.
The wedge pattern potentially forecasts a 43% drop towards $2.81, which is close to the 1.78 Fibonacci level. However, the more likely and shorter-term target is near the $4.07 (1.23 fib line) support area. If the $4.61 level clearly breaks, the chance to test $4.07 increases and selling pressure may intensify if the overall sentiment in the cryptocurrency market weakens.
If investor behavior changes and MYX falls into an overbought state, as the MFI predicts, the situation may change. If investments begin to exceed outflows and short positions are closed, MYX Finance may attempt to stabilize. A clear upward movement above the resistance level of $5.75 would nullify the bearish outlook and could push the price towards $6.00 in the short term.
