MYX Finance [MYX] posted gains of 8% in the last 24 hours. Some analysts have attributed the rally to a short-term breakout past the key technical and psychological $3-resistance.
In a recent AMBCrypto report, MYX’s breakout from a descending channel was described. Combined with high trading volume and a brief uptick in Open Interest, a $3.45 price target was expected.
This target has been achieved, and then some. On Monday, 15 December, MYX Finance token’s price reached a local high of $3.9. The $3.45-level could act as support and help start the next rally.
The $ 3.20 short-term supply zone and the $3.45 high were marked as the levels to beat to flip the structure bullishly. This has come to pass, and the high trading volume over the past five days has confirmed the bullish breakout as genuine.
While the long-term trend is not strongly bullish yet, the past six weeks did see significant progress. At the time of writing, the OBV was slowly climbing higher, the structure remained consistently bullish, and the moving averages highlighted the momentum shift.
On the other hand, the past four days also saw a steady drop in Open Interest. Moreover, in the last 36 hours, the funding rate was deeply negative. These were signs of traders exiting their positions, and the market favoring short positions, based on the funding rate.
It showed the recent rally was a short squeeze, which has the risk of a swift reversal. Despite the rising volume in the spot market, traders need to be careful of short-term volatility.
Data from Coinalyze revealed that MYX’s rally might be unsustainable. The 24-hour long/short ratio was 0.96, according to CoinGlass. This could be a sign that the rally beyond $3.7 was to hunt short positions.
The D1 timeframe highlighted a steady bullish structure. The breakout past $3.45 was encouraging, especially at a time when Bitcoin [BTC] posted losses. The $3.33-$3.52 area is a short-term demand zone for the altcoin.
A price drop below $3.26 would invalidate the short-term bullish setup. On the other hand, a bounce from the $3.45 area towards the next resistance at $4.2 still appeared more likely than a bearish reversal.
