Essential Points
What Sparked MYX Finance’s Rise?
A significant short squeeze, totaling $39 million, combined with breaking through the $11.88 resistance level, propelled MYX upward by 47% in a single day.
What Should Investors Monitor Moving Forward?
Maintaining support above $12 is vital. If this level fails, the price could fluctuate between $9 and $12, despite robust trading activity and growing investor accumulation.
On September 27th, MYX Finance [MYX] experienced a substantial increase of 47%, mirroring the broader market’s recovery of 0.68%. Previously, the altcoin demonstrated resilience by staying above $10, countering doubts about the rally’s sustainability.
MYX has consistently defied critics by maintaining its initial momentum, even during a recent market slowdown. This analysis delves into the underlying factors driving this one-day price surge.
Drivers Behind the MYX Rally
The primary catalyst for MYX’s 47% price leap was a key technical breakout. The price surged from a support level around $9 to challenge the resistance point at $11.88.
This technical breakthrough, confirmed by the SuperTrend indicator, reinforced a bullish outlook.
The liquidation of short positions exceeding $39 million triggered a short squeeze, pushing the price past $10 as the selling pressure diminished.
Furthermore, highly leveraged trading orders amplified the upswing, contributing to a trading volume that reached $194 million, representing a 51.7% increase in daily trading activity.
However, MYX needs to establish $12 as a firm support level. While the MACD indicator suggested buyer dominance, upward momentum seemed somewhat limited.
The True Strength Index also showed an upward trend starting September 23rd, indicating accumulation.
Source: TradingView
If MYX fails to maintain its position above $12, a retreat to its previous trading range of $9–$12 is possible. A further sell-off could extend losses below the lower boundary.
Liquidation Data Showed Bullish Strength
Binance’s Liquidation Map revealed that bullish activity forced prices through clusters of 50x short positions.
Cumulative long liquidation leverage reached $1.24 million near $9.76, contrasting with $675,000 from sellers. This positioning indicated confidence in prices exceeding $11, although leverage alone doesn’t guarantee upward movement.
Source: CoinGlass
At the time of reporting, MYX was trading at $12.78 with a $2.51 billion market capitalization, a decrease from its daily high of $14.45. While the token still shows strong volume and significant holder interest, potential downside risks remain due to general market instability.