The price of MYX Finance has fallen rapidly, breaking through the important level of USD5.00 and indicating an increased downside risk.
This recent sharp decline occurred after several periods of weakening driving forces, and selling pressure immediately increased when MYX could not maintain above the intraday support. The market structure now reflects a more pronounced downward trend.
MYX traders are starting to look bearish.
Selling pressure is increasing among MYX traders after the price has continuously declined. Funding rate data shows that the futures market has a large number of open short positions. A negative funding rate reflects bearish sentiment because traders are positioning for the continued decline of MYX Finance.
The rise in short interest often serves as a signal to expect that prices will adjust deeper. Each trader seems to be waiting for the right moment to speculate if prices drop heavily through the leverage position. The imbalance in the derivatives market may increase volatility, further reinforcing the downtrend if selling pressure increases.
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The Money Flow Index or MFI indicates heavy selling pressure that is pressuring the price of MYX and supporting the current correction. This indicator has been consistently declining, indicating a steady outflow of capital. This apparent weakness confirms that the downtrend continues to control the market in the short term.
Although the MFI is approaching the oversold zone, it is not yet below 20.0. If it clearly falls below this level, it often signals a point where selling pressure is saturated and accumulation may start at lower prices. If the accumulation strengthens, MYX may attempt a technical recovery.
The price of MYX has dropped 23% in the past 24 hours, trading at 4.87 USD after falling below 5.00 USD. The token now appears to be breaking out of an uptrend in a bearish ascending wedge pattern, which often leads to a strong correction when the support level fails.
This wedge structure indicates a potential decline of 43% to around 2.81 USD, which aligns with the Fibonacci level of 1.78. However, a more realistic target lies in the support zone near 4.07 USD (fib line 1.23). If it clearly falls below 4.61 USD, the chances of testing 4.07 USD will increase, with the downside risk escalating if overall crypto market sentiment deteriorates.
However, changing investor behavior could turn this perspective if MYX enters an oversold condition as indicated by the MFI. If more money flows in than flows out along with the closing of short positions, everyone may see that MYX Finance could start attempting to stabilize. If the price can decisively rise above the resistance at 5.75 USD, the bearish hypothesis will be invalidated, and prices may trend towards 6.00 USD in the near term.
