Here’s why the MYX Finance price surged and why it may crash soon

MYX Finance price went parabolic this week, becoming one of the best-performing tokens in crypto. It jumped from a low of $0">Copy link

Why MYX price is set to crash

There are a few fundamental and technical reasons why the MYX Finance token is set to crash soon.

First, from the base level, its platform is not doing well and is showing signs of manipulation. As the chart below shows, the perpetual exchange volume moved from $115k in March to $787 million in April, then dropped to $418 million in May. Since then, it has remained below $1 million in each month.

MYX Finance perps volume | Source: DeFi Llama

Second, third-party data shows that investors are dumping the token, with the supply in exchanges rising to 995 million, up from 977 million on September 4. What is notable is that the supply remained unchanged at 977 million for months, a sign that many holders are exiting their positions, which will lead to more selling pressure.

Third, the futures market shows that the situation is getting worse as the weighted funding rate has tumbled in the past few days. A negative funding rate signals that investors believe that the future price will be much lower than the current spot one.

MYX price technicals suggest a plunge is coming

MYX price chart | Source: TradingView

The other reason why the MYX Finance price is on the verge of a crash is that it is now entering the distribution phase of the Wyckoff Theory, which is characterized by a series of lower lows. The recent surge happened as it moved to the markup phase.

Further, the coin will crash because it remains much higher than the short and long-term moving averages, which will trigger a situation known as mean reversion, where an asset moves back to these averages.

Also, as the chart above shows, the coin became highly overbought as it soared. In most cases, a highly overbought asset tends to plunge as holders sell it. Therefore, there is a risk that the token will drop to the key support at $2.43, down by 81% from the current level.

The post Here’s why the MYX Finance price surged and why it may crash soon appeared first on Invezz

Here’s why the MYX Finance price surged and why it may crash soon

Why MYX price is set to crash

MYX price technicals suggest a plunge is coming

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