The price of MYX Finance has sharply declined, falling below the important support level of $5.00, indicating increased downside risk.
This decline occurred after several instances of waning momentum. The sell-off has accelerated as MYX failed to maintain key intraday support levels. The current market structure shows a bearish transition.
MYX traders, bearish transition
The recent downtrend has led to an increase in short positions among MYX traders. According to funding rate data, short contracts dominate the futures market. The negative funding rate reflects a strong belief in further declines, indicating that traders are positioning themselves for a further drop in MYX Finance prices.
An increase in short-selling interest typically indicates that a deeper correction is expected. Traders appear to be anticipating a sharp drop in prices and aiming to profit from leveraged positions. Such imbalances in the derivatives market can increase volatility, and if selling pressure intensifies, downward pressure could be strengthened.
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The Money Flow Index (MFI) indicates strong selling pressure on the MYX price. This indicator has shown a downward trend in recent sessions, reflecting sustained capital outflows. This weakness confirms that bearish momentum prevails in short-term trading.
The MFI is approaching the oversold threshold but has not yet fallen below 20.0. If this figure clearly dips below, it usually indicates a saturation of selling, and a buying interest may emerge. If buying pressure strengthens, MYX could attempt a technical rebound.
The MYX price has fallen 23% in the last 24 hours, dropping below $5.00 and is currently trading at $4.87. The token currently shows signs of breaking out of a bearish rising wedge pattern. Such a pattern is recognized as a precursor to a sharp decline if the support line fails.
The wedge structure shows a possibility of falling to $2.81, down 43%. This aligns with the 1.78 Fibonacci level. However, a more realistic short-term target is close to the support zone of $4.07 (1.23 Fibonacci line). If it definitively falls below $4.61, the likelihood of testing $4.07 increases, and the risk of further declines rises if the cryptocurrency market sentiment weakens.
This outlook could change if investor behavior shifts and MYX reaches an oversold phase. The MFI is showing such signals. If inflows surpass outflows and short positions are unwound, MYX Finance could attempt to stabilize prices. If it strongly surpasses the $5.75 resistance level, the bearish scenario would be invalidated, potentially recovering to $6.00 in the short term.
