MYX Finance price went parabolic this week, becoming one of the best-performing tokens in crypto. It jumped from a low of $0.133 in August to a record high of near $20, transforming it into a $3 billion coin. This article explains why MYX surged and why it may crash soon.
Why MYX Finance price jumped
MYX Finance is a decentralized exchange (DEX) on the BSC Chain. Until this week, it was a relatively unknown platform. According to DeFi Llama, the network’s perpetual volume has largely dried up after soaring to a record high of $784 million in April. It crashed to less than $1 million this month.
MYX price caught many investors off guard as it surged to a record high. This surge was notable because of its magnitude and the fact that it came out of nowhere. It sent memories of Onyxcoin (XCN), which surged from a low of $0.0022 on January 1 to a high of $0.049 on January 26, a 2,245% surge.
The MYX price jumped was also surprising as it happened without any news event. Therefore, most analysts believe that this was pure market manipulation by its insiders.
In an X post, Bubblemaps noted that the MYX Finance team was tied to wallets that claimed over $170 million from their airdrop, allegations that the team vaguely denied.
BREAKING: The $MYX team is directly tied to wallets that claimed $170M from their airdrop Inside job? Here’s what we know 🧵
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.
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
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.
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