MYX Finance price has fallen sharply and has slipped below the critical $5.00 level, signaling increased downside risk.
This decline comes after several sessions of weakened momentum. Selling pressure increased after MYX failed to maintain an important intraday support level. The market structure now reflects a bearish shift.
MYX traders are becoming bearish.
The recent decline has led to increased short positioning among MYX traders. Data for funding rate shows that the futures market is dominated by short contracts. Negative funding reflects bearish conviction as traders position themselves for further declines in MYX Finance price.
An increase in short interest often signals an expectation of a deeper correction. Traders seem to anticipate a market crash they can exploit through leveraged positions. This imbalance in the derivatives markets can amplify volatility and increase downward pressure if selling intensifies.
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The Money Flow Index, or MFI, indicates strong selling pressure on MYX's price and reinforces the ongoing correction. The indicator has fallen in recent sessions, reflecting continuous capital outflows. This weakness confirms that bearish momentum still dominates short-term trading activity.
Even though the MFI is approaching oversold levels, it has not yet fallen below 20.0. A clear break below this level typically signals selling pressure, where accumulation may occur at discounted prices. If accumulation increases, MYX may attempt a technical rise.
MYX's price has fallen 23% in the last 24 hours and is now trading at $4.87 after slipping below $5.00. The token now appears to be breaking down from a bearish rising wedge pattern. Such formations often lead to sharp corrections when support levels fail.
The wedge structure suggests a potential decline of 43% towards $2.81, which coincides with the 1.78 Fibonacci level. A more immediate and realistic target, however, lies at $4.07 (1.23 fib-line) support level. A confirmed break below $4.61 would increase the likelihood of testing $4.07, with further downside risk if the overall crypto sentiment weakens.
A change in investor behavior may alter this picture if MYX becomes oversold, as suggested by the MFI. If capital inflows increase relative to outflows and short positions cover, MYX Finance may attempt stabilization. A clear break above resistance at $5.75 would invalidate the bearish thesis and potentially drive the price towards $6.00 in the short term.
