MYX, the native token that powers the non-custodial derivatives exchange MYX Finance, has emerged today’s standout performer, surging nearly 30% in the past 24 hours.
Despite the impressive rally, cracks are beginning to show beneath the surface. Data reveals that the actual demand for the altcoin is waning. This suggests that the price spike may be riding the broader market rebound rather than strong organic momentum, risking a pullback.
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MYX Leads Gains, Yet Bearish Divergences Warn of a Cooldown Ahead
MYX’s double-digit uptick over the past day has been accompanied by a decline in trading volume, signaling that buyers are not rushing in to support the upswing. This has exceeded $2.5 billion at press time, rocketing by 25% during the review period.
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When an asset’s price rises while trading volume falls, it is considered a form of negative divergence. This pattern suggests that the rally lacks strong conviction from market participants and is driven primarily by short-term speculation or broader market movements.
For MYX, the surge in its price mirrors the improvement in broader market sentiment today following a week of lackluster performance. Nonetheless, the falling trading volume signals that the rally is not being fueled by investor demand and could witness a correction.
In addition, readings from the MYX/USD one-day chart reveal that the token’s Chaikin Money Flow (CMF) is trending downward toward the zero line, even as its price pushes higher. This creates an early-stage bearish divergence, a red flag that often precedes a shift in momentum.
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The CMF indicator measures the flow of capital into or out of an asset by analyzing price and volume. A positive CMF reading signals strong buying pressure and healthy market participation, while a decline toward the zero or negative zone indicates weakening inflows.
The momentum indicator forms a bearish divergence when an asset’s price continues to climb while its CMF trends downward. This suggests that despite higher prices, the underlying money flow is drying up, reflecting reduced conviction among buyers.
This adds to the pressure on MYX’s price and confirms the likelihood of a near-term price reversal.
Dip To $9.55 Or Breakout Toward $14.95?
Without fresh capital flows to sustain the uptrend, MYX’s price may struggle to hold on to its gains in the meantime. Once its current momentum stalls and demand remains low. MYX could reverse its uptrend and fall to $9.55.
On the other hand, if bullish sentiment grows and buying activity strengthens, MYX could extend its gains beyond $11.78 and rally toward $14.95.