MYX, the native utility token of MYX Finance, has emerged as right now’s prime gainer, skyrocketing greater than 200% up to now 24 hours. The altcoin even retested its all-time excessive of $14.58 throughout early Asian buying and selling hours right now, earlier than witnessing a pullback to commerce at $12.57 at press time.
Nonetheless, the explosive rally is fueling skepticism throughout the market. Analysts level to acquainted indicators of manipulation, whereas overbought alerts on the charts warn of an imminent correction.
MYX Buying and selling Frenzy Raises Crimson Flags
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The skepticism round MYX’s rally is fueled by unusually excessive buying and selling exercise, with each spot and derivatives volumes showing overstretched.
Within the final 24 hours alone, MYX has recorded $781.11 million in spot buying and selling quantity, a staggering 122% improve in comparison with the day prior to this. The derivatives market has seen much more dramatic spikes.
In response to Coinglass information, perpetual futures quantity has soared 174% to succeed in $12 billion, whereas futures open curiosity has climbed 62% to $396 million.
MYX Futures Open Curiosity. Supply: Coinglass
Such explosive development in leveraged buying and selling means that a lot of the present rally could also be pushed by short-term hypothesis moderately than sustained investor conviction.
Furthermore, BeInCrypto earlier reported that some analysts proceed to view MYX’s rally as the results of manipulation, an allegation the token has confronted repeatedly.
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In August, MYX’s 1,957% appreciation drew heavy criticism, with some branding it a “trap. ” Whereas the coin later shed a few of these beneficial properties, it regained momentum in September earlier than hitting its newest peak. Nonetheless, doubts persist.
MYX’s Rally Operating on Borrowed Time
Readings from the token’s one-day additional complicate the outlook. MYX at present flashes overbought alerts on the every day chart, suggesting that the token could have surged too far and could also be due for a reversal.
That is mirrored by its Relative Energy Index (RSI), which stands at 86.43 as of this writing.
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The RSI indicator measures an asset’s overbought and oversold market circumstances. It ranges between 0 and 100. Values above 70 recommend that the asset is overbought and due for a worth decline, whereas values beneath 30 point out that the asset is oversold and will witness a rebound.
At 86.43, MYX’s RSI means that the token is deep in overbought territory, a precursor to a pointy worth correction.
Moreover, its destructive Stability of Energy (BoP) helps this bearish outlook. At press time, it was at -0.49 and trending downward, confirming the falling buy-side strain available in the market.
The BoP indicator tracks the power of consumers versus sellers over a given interval. A constructive studying displays dominant shopping for exercise, whereas a destructive worth signifies that sellers exert larger management.
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With MYX’s BoP sitting at -0.49 and trending decrease, underlying demand is weakening, and sellers are steadily regaining affect.
This divergence between worth motion and market power provides weight to the argument that MYX’s rally could also be working on borrowed time.
MYX Stares at $14.58 Resistance, $9.01 Help
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Any reversal in MYX’s present rally may see its worth fall to check the help flooring shaped at $11.46. If this stage fails to carry, the token’s worth may plunge additional to $9.01.
Nonetheless, a continuation of the uptrend may see MYX revisiting its all-time excessive of $14.58 and trying to rally previous it.
