Key Points to Note
Why did MYX Finance lose all its September gains?
Despite a surge in trading volume during last month’s rally, MYX Finance experienced a decline below $10, resulting in a significant loss of the previously gained profits.
Is a return to $19 possible for MYX?
A potential rally to $19 would likely require a substantial increase in trading volume above the average levels. However, given the current weak sentiment in the altcoin market, a recovery seems unlikely at the moment.
At the time of writing, MYX Finance [MYX] was priced at $2.93. The native token of a decentralized exchange specializing in perpetual contracts witnessed a remarkable 1,878% surge in less than 10 days in September.
Deep Retracement post-September Peak
Source: MYX/USDT on TradingView
The price surge took MYX from $0.96 to $19, but a significant retracement followed thereafter.
Market participants hoped that key Fibonacci retracement levels would act as support. The 78.6% retracement level at $4.82 served as a support level for a while.
However, MYX retraced the entire September rally, dropping to a low of $0.886 following Bitcoin’s fall from $126k to $102k. The price later rebounded to a short-term high of $4.33.
The daily chart indicated a gradual decline in OBV, signaling selling pressure. Traders should monitor sustained demand and an uptrend in OBV to support the possibility of a price recovery.
Additionally, the 24-hour perp trading volume of the DEX stood at $260 million at the time of writing, a healthy figure despite a decrease from late August levels of around $330 million.
Short-term Forecast for MYX
Recent volatility can be attributed to last Friday’s altcoin sell-off. If $4.33 transitions to a support level, MYX could regain short-term strength, although the market structure across daily and 4-hour charts remains bearish.
Source: MYX/USDT on TradingView
Confirmation of buyer control is essential for a bullish outlook. This would entail MYX surpassing the swing high at $5.6, which marked the beginning of the bearish price movement last week.
Over the past week, the $2.5 support zone has remained intact.
Although OBV continues to show a downtrend, the decline has slowed over the last three days. The MACD has moved closer to the zero line, with a bullish crossover indicating a potential shift in momentum.
A bullish rally in Bitcoin towards $114k could also positively impact MYX’s short-term sentiment.
Disclaimer: The views expressed do not constitute financial, investment, trading, or any other form of advice and are solely the author’s opinion.