MYX Finance Rallies 13% Following Triangle Breakout as Leveraged Longs Trigger Short Squeeze
Key Takeaways
- •MYX Finance's token gained over 13% in 24 hours and more than 26% over the past week, ending a prolonged downtrend.
- •The breakout above $0.07226 resistance was confirmed through a triple retest after more than a month of consolidation.
- •Approximately 75% of top traders on Binance held long positions, making them the primary drivers behind the price surge.
- •A short squeeze liquidated roughly $10,000 in short positions while long buyers lost only about $90, producing the largest hourly liquidations in the past week.
- •The RSI reading of 76.58 indicates overbought conditions that could lead to a near-term pullback if momentum cools.
MYX Finance (MYX) has gained more than 13% over the past 24 hours, breaking out of a prolonged downtrend. The altcoin has posted weekly gains exceeding 26%, while its monthly performance turned positive at 8.34%. MYX is the native token of the MYX Finance decentralized exchange, which operates on the BNB Chain and offers on-chain trading and liquidity services.
The broader altcoin market had already begun recovering from extended consolidation phases prior to MYX's rally, raising the question of whether the breakout can be sustained.
Triangle Pattern Breakout
On the 4-hour chart, MYX was trading toward the upper boundary of a triangle formation when it broke through key resistance levels. The consolidation phase had persisted for over a month before the altcoin breached its slanting resistance at $0.07226.
MYX confirmed the breakout with a triple retest at $0.07226. Data from the Binance exchange indicated that top traders were the primary drivers behind the move, based on long and short ratios for top trader accounts. Approximately 75% of top traders held long positions, while 25% were short. Across all accounts, including retail traders, the ratio stood at 3.357. The long/short ratio for top trader positions was 1.295.
Meanwhile, an RSI divergence signaled bullish momentum, with a rising reading of 76.58. That level places the RSI firmly in overbought territory above the traditional 70 threshold, a zone that can signal strong buying pressure but also raises the possibility of a near-term pullback if momentum cools.
Selling pressure remained concentrated around $0.09, which explained why MYX was struggling to clear that zone. A breach above this level could open the path toward $0.12, corresponding to the most recent lower high. Beyond $0.12, the next significant supply area sits at $0.1582, though it remains uncertain whether the altcoin can reach that level.
Derivative and Spot Activity
Daily token trading volume has been climbing, signaling spot accumulation. Over the past two days, volume rose by $2 million, moving from $6 million to $8 million.
On Binance, leveraged long orders at 10x, 15x, and 20x exceeded $500,000 in value, compared to approximately $170,000 in shorts. This leverage dynamic contributed to pushing MYX's price higher.
As bulls increased leveraged long positions between $0.0689 and $0.0867, short liquidations spiked, creating a short squeeze that amplified the gains. In a short squeeze, traders who bet against the asset are forced to buy back their positions as prices rise, adding further upward pressure. The move produced the largest hourly liquidations seen over the past week, with negligible long liquidations. Roughly $10,000 worth of short positions were liquidated, while long buyers lost only about $90.
The continuation of MYX's rally remains plausible, though subject to broader cryptocurrency market conditions. For smaller-cap altcoins like MYX, leveraged-driven moves can reverse quickly if open interest unwinds, making sustained volume and spot demand critical factors to monitor alongside the overhead supply levels at $0.09 and $0.12.