MYX Finance [MYX] was up 12% in 24 hours, but down 9.78% over the past week. Last Monday, the 15th of December, MYX ended the day’s trading at $3.90. That was seen as a bullish breakout, and further gains were expected.
Unfortunately for the bulls, what looked like a breakout was instead a liquidity grab. The move squeezed the short positions out, then reversed, falling to $2.90 by Thursday.
At the time of writing, MYX Finance was once again at $3.30, back above the psychological $3 level. The expectations in a previous report were incorrect, and the altcoin’s price action had taken what was seen as the less likely path at that time.
Outflows were gaining strength, and perp traders had a bearish outlook. What should the token’s traders watch out for next?
Reassessing the MYX trends
Source: MYX/USDT on TradingView
On the 1-day chart, the structure has been established to be bullish, and this has not changed. On the 4-hour chart, a bullish break (orange) occurred when prices soared past the $3.10 level on Sunday.
When it did so, MYX left behind a relatively large imbalance of $2.93-$3.18. This imbalance will likely be tested as a demand zone.
The CMF showed significant capital inflows, and the MACD was about to cross above zero to signal bullish momentum. Together, the technical indicators showcased bullish potential.
The argument for a bearish breakdown
The crypto market sentiment was firmly bearish, and Bitcoin [BTC] has not reclaimed key levels such as $94.5k.
As a result, altcoins such as MYX could find it difficult to rally significantly.
Like the previous move to $3.9, the current surge could also be halted by profit-taking activity.
Traders’ call to action – target THIS zone
Source: CoinGlass
Given the H4 and D1 structures, leaning bullish was viable, so long as the imbalance is respected as a demand zone. This meant that a revisit to the $2.93-$3.18 area was a buying opportunity.
The Liquidation Heatmap showed two sizeable magnetic zones. The first, less dense one stretched from $3.87-$4.40, and the one to the south, which was denser but slightly further away, was clustered around the $2.49-$2.66 zone.
Traders can bet on a bullish move toward $4.40, with the setup’s invalidation being a drop below $2.93.
Final Thoughts
- MYX Finance saw a short squeeze last week, but the bulls were attempting another rally at the time of writing.
- Despite the recent volatility, traders have reason to bet on a bullish outcome.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Source: https://ambcrypto.com/myx-finance-back-above-3-after-a-fakeout-can-it-reclaim-this/
