- MYX Finance is trading near its all-time high after a sharp rally, but traders are signaling caution with increased short positions.
- Profit-taking could trigger a reversal, though a breakout above $20 remains possible if holders resist selling.
MYX Finance has captured market attention after a sharp rally, but signs of caution suggest the bullish run may not last.
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Strong Surge Toward Record Levels
MYX Finance has surged 22% this week, pushing its price close to its all-time high (ATH). At the time of writing, the token trades at $18.22 after a 30% daily increase, leaving it less than 5% away from its $18.91 ATH. The rapid gains highlight MYX as one of the week’s top performers.
However, history shows that tokens testing fresh highs often face strong selling pressure as investors lock in profits.
Bearish Signals from MYX Finance Traders
Despite the rally, market sentiment is flashing warning signs. Funding rates are at their lowest in a month, pointing to an increase in short positions. Many derivatives traders appear to expect MYX’s price to decline soon, with profit-taking potentially fueling a correction.
This cautious stance is also reflected in liquidation maps. Around $12.89 million in short contracts could be liquidated if MYX touches its ATH. Such liquidations may briefly drive prices higher by triggering forced buying, but they also reveal skepticism about the rally’s sustainability.
Path Ahead: Breakout or Breakdown?
The tug-of-war between bullish buyers and profit-takers will shape MYX’s next move. If investors begin aggressively booking profits, MYX could retreat toward $11.52 or even lower, erasing much of its recent growth.
On the other hand, if holders remain strong and resist selling pressure, MYX could breach its ATH of $18.91. A decisive push beyond $20.00 would challenge the bearish outlook and potentially set the stage for further gains.
MYX Finance’s surge highlights both excitement and risk in the current crypto market. While the token’s rise to near-record levels has drawn attention, bearish positioning and the threat of profit-taking suggest caution. Traders will be watching closely to see whether MYX breaks new ground or faces a sharp reversal.
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