MYX Finance price has plummeted significantly, and has now fallen below the important 5.00 USD. This indicates that the risk of further decline is increasing.
The decline has come after several days of reduced strength. Selling pressure increased when MYX failed to maintain important intraday support. The market now shows clear signs of weakness.
MYX traders are turning negative
The recent decline has caused more to take short positions among MYX traders. Data on financing rates shows that the futures market is now dominated by short contracts. Negative financing means that many believe in a continued price drop, as traders speculate on further declines in MYX Finance price.
When the interest in going short increases rapidly, it often indicates that the market expects a larger decline. Traders seem to believe that the price is crashing, which they are trying to profit from through leveraged positions. This imbalance in the derivatives market can amplify the swings and exert further downward pressure if more start selling.
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Money Flow Index, or MFI, shows strong selling pressure on MYX price and confirms the price decline. The indicator has decreased in recent days, indicating that money is flowing out of MYX. This weakness shows that negative forces dominate in the short-term trading.
Even though MFI is approaching oversold levels, it has not yet gone below 20.0. If MFI clearly breaks below that level, it usually means that selling pressure is very high, and buying may begin at lower prices. If buyers strengthen, MYX may attempt to recover technically.
MYX price has dropped by 23% in the last 24 hours. It is currently trading at 4.87 USD after falling below 5.00 USD. The token now appears to be breaking a rising triangle formation, which usually leads to sharp declines when support gives way.
This wedge formation indicates a possible decline of 43% towards 2.81 USD, which coincides with Fibonacci level 1.78. However, a more likely short-term target is the support at 4.07 USD (1.23 fib level). If the price confirms the reversal below 4.61 USD, the risk of testing 4.07 USD increases. If the general crypto sentiment falls, the price may drop even further.
If investors change their behavior, the situation may change if MYX becomes oversold, as suggested by MFI. If the money inflows start to exceed the outflows and short positions are closed, MYX Finance may try to stabilize. If the price clearly breaks above the resistance at 5.75 USD, the negative outlook may fade and the price may rise towards 6.00 USD in the short term.
