Market Analyst
Published:
Key Points
MYX Finance experienced a massive surge, exceeding 250% gains in just two days,
fueled by significant interest in perpetual trading. Will buyers entering late be
able to capitalize on the present price correction?
On September 8th,
MYX Finance [MYX]
witnessed an extraordinary increase of over 298%, climbing from a value of $4 to
$14. This upward trend continued into the following day, reaching $18 and
affording buyers an additional 56% profit.
This substantial price movement was driven by considerable perpetual trading volume
occurring on the MYX Finance platform. Data from the
BNB
Chain indicates that MYX Finance
achieved top trading volumes
within the network, alongside
PanCakeSwap [CAKE].
This isn’t entirely unexpected, as other tokens within the same category, such as
Hyperliquid [HYPE]
and
IDEX, have also experienced substantial upward price action recently.
In fact, the overall trading volumes for perpetual contracts handled on decentralized
exchanges (DEXes) are approaching 10% of those on centralized exchanges (CEXes),
demonstrating the growing interest in decentralized perpetual trading.
Source: The Block
As of this writing, the rapid ascent of MYX has moderated somewhat, potentially due
to profit-taking. Will buyers be able to maintain support above $10?
Will MYX Sustain Above $10?
The current pullback is nearing the “golden ratio” zone (between 0.5 and 0.618
Fibonacci retracement levels, indicated in yellow), which is approximately at the
$10 mark.
This suggests that the $10 level could function as a crucial near-term support
level for the token.
Source: MYX/USDT, TradingView
Should the $10 support hold, a subsequent rise back to $18 or even $28 could
provide returns ranging from 55% to 150%. The On Balance Volume (OBV) indicator
remains elevated, suggesting continued strong trading activity and potential for
further upside.
However, overbought signals on both shorter and longer timeframes suggest that the
current price uptrend might require a more significant cooling-off period.
A break below $9.5 could strengthen the case for sellers and negatively affect the
positive outlook described above.
The Importance of Buyers Defending $10
Losing the $10 level and triggering liquidity below $9 could heighten the
possibility of a drop back to the $3 range, based on analysis of liquidity pool
positions located at $12, $9 and $3.
In a scenario driven by the pursuit of liquidity, MYX might test $12 and $9.
However, consistent trading below $10 could make the significant liquidity area
around $3 (marked in yellow) an attractive price target.
Source: CoinGlass
September’s trading activity has fueled a greater than 4x rally for MYX. Additional
increases are possible if buyers can hold the $10 psychological level.
However, the uptrend could falter if that support gives way.