The trading volume skyrocketed during the rally last month, but it faded when MYX dipped below $10, and MYX was forced to cede almost all the gains made.
A surge in trading volume above the daily average levels would likely precede such a rally. For now, with the altcoin market sentiment being extremely weak, a recovery looked unlikely.
MYX Finance [MYX] was trading at $2.93 at the time of writing. The native token of the decentralized exchange specializing in perpetual contracts rallied 1,878% in less than 10 days in September.
This rally took the prices from $0.96 to $19, but since then, a deep retracement has occurred.
Market participants hoped that key Fibonacci retracement levels would be respected as support. For a while, the 78.6% retracement level at $4.82 served as a support.
The Bitcoin [BTC] fall from $126k to $102k saw MYX retrace the entirety of September’s rally, dipping to the low of $0.886 before rebounding to a short-term local high of $4.33.
Moreover, the daily chart showed that the OBV was slowly sliding lower, showing sell pressure. Traders should watch out for sustained demand and an uptrend on the OBV to support the idea of a price recovery.
In addition, the 24-hour perp trading volume of the DEX was at $260 million at the time of writing. This was a healthy figure, although it was a noticeable drop from the late August levels of around $330 million.
Recent volatility stemmed partly from last Friday’s altcoin sell-off. If $4.33 flips to support, MYX could regain short-term strength. Until then, market structure across daily and 4-hour charts remained bearish.
We need to see clues that buyers are in control before flipping to a bullish outlook. This would occur when MYX rallies beyond the swing high at $5.6, where the bearish impulse move last week originated.
Over the past week, the $2.5 support zone has been defended.
The OBV was still in a downtrend, but it has slowed over the past three days. The MACD climbed back toward the zero line. A bullish MACD crossover would be an early clue that momentum was changing.
A Bitcoin rally toward $114k can flip the MYX sentiment bullishly in the short-term as well.
