MYX Finance Surges Above $3 Following Short Squeeze – What’s Next?

MYX Finance bulls regain footing after last week's short squeeze

MYX Finance has experienced significant price movements recently, bouncing back above the $3 mark after a brief drop. Following a bullish breakout last week, the price hit a high of $3.90 before experiencing a correction. Current trends suggest that traders should watch for key resistance and support levels as they consider future investments.

Key Takeaways

Recent Movement: MYX Finance rose 12% over 24 hours but is down nearly 10% over the week.
Price Dynamics: After a fakeout to $3.90, the price dropped to $2.90 before recovering to $3.30.
Market Sentiment: There's a bearish sentiment in the market, especially with Bitcoin failing to reclaim critical levels.
Actionable Insights: The $2.93-$3.18 price area could serve as a buying opportunity, but the $4.40 target is a focus for bullish traders.

Analyzing MYX's Price Trends

MYX 4-hour Chart
Source: MYX/USDT on TradingView

On the daily chart, MYX Finance has maintained a bullish structure. A breakout occurred on the 4-hour chart when prices surged above $3.10 on Sunday. This movement created a notable price imbalance between $2.93 and $3.18, which may need to be tested as a demand zone in the near future.

Indicators such as the Chaikin Money Flow (CMF) have shown considerable capital inflows, and the Moving Average Convergence Divergence (MACD) is on the verge of crossing above zero, indicating potential bullish momentum.

Considering the Bearish Argument

Despite some bullish indicators, overall sentiment in the crypto market remains negative, as Bitcoin has yet to reclaim key price levels around $94.5k. This prevailing sentiment could pose challenges for altcoins like MYX, making significant upward movement difficult. Just as the price experienced a pullback after reaching $3.90, similar profit-taking could halt the current upward surge.

Traders' Strategy – Focus on Specific Zones

MYX Liquidation Heatmap
Source: CoinGlass

Given the bullish structure on the 4-hour and daily charts, it's reasonable for traders to adopt a bullish stance, provided that the identified imbalance is respected as a demand zone. A revisit to the price range of $2.93 to $3.18 could present an optimal buying opportunity.

The Liquidation Heatmap indicates two prominent trading zones: the first zone, from $3.87 to $4.40, is less dense but magnetically significant. The second, more densely clustered zone lies between $2.49 and $2.66. Traders may speculate on a move toward $4.40, with a breakdown below $2.93 signaling a reversal.

Final Thoughts

Disclaimer: The information contained herein is for informational purposes only and does not constitute financial advice. This article represents the author's opinion and should not be interpreted as trading or investment guidance.