The post Short squeeze or structural shift? Here’s why MYX’s price rally is drawing attention appeared on BitcoinEthereumNews.com. MYX Finance [MYX] posted gainsThe post Short squeeze or structural shift? Here’s why MYX’s price rally is drawing attention appeared on BitcoinEthereumNews.com. MYX Finance [MYX] posted gains

Short squeeze or structural shift? Here’s why MYX’s price rally is drawing attention

2025/12/16 14:07

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.

Decoding the mixed MYX signals

Source: MYX/USDT on TradingView

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.

Source: Coinalyze

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.

The short squeeze scenario

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.

Traders’ call to action – Trust the price action

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.


Final Thoughts

  • MYX Finance showed mixed signals when assessing the Futures data and the price action across different timeframes.
  • While the recent move may have been a short squeeze, traders could maintain their bullish bias, and look to buy at $3.4-$3.5.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Next: Adam Back shuts down Quantum FUD that could ‘likely crash Bitcoin’s market’

Source: https://ambcrypto.com/short-squeeze-or-structural-shift-heres-why-myxs-price-rally-is-drawing-attention/

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

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