MYX Nears All-Time High After 22% Rise, But Here’s Why A Reversal Is Likely

MYX Finance has emerged as one of the best-performing tokens of the week, rallying sharply and gaining 22% to approach its all-time high (ATH). 

The altcoin’s rapid ascent has caught investor attention, but history suggests the rally may soon face resistance.

MYX Finance Traders Are Exhibiting Bearishness

Traders appear to be bracing for a potential correction in MYX price despite the strong upside momentum. Funding rates are at their lowest levels in nearly a month, reflecting a surge in short positions. This suggests market participants expect a drawdown in the near term.

The move toward short contracts highlights cautious sentiment among derivatives traders. While MYX has rallied significantly, the bearish positioning indicates that many expect profit-taking to weigh on price action.

If selling pressure increases, the ongoing rally could face meaningful resistance around its record highs.

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Broader momentum signals also point toward heightened bearish activity. The liquidation map shows that approximately $12.89 million in short contracts could be liquidated if MYX climbs to its ATH of $18.91.

At less than 5% away, this threshold is within reach, offering potential volatility.

Such liquidations could paradoxically benefit MYX in the short term by triggering forced buying and pushing prices upward. However, the broader positioning indicates skepticism among traders.

This tug-of-war between bullish inflows and short sellers will likely determine MYX’s trajectory as it hovers near record highs.

MYX Price Can Form A New ATH

At the time of writing, MYX trades at $18.22 after surging 30% in the past 24 hours. The token recently set a new ATH on Tuesday and is now just shy of reclaiming that milestone, with momentum favoring another upward push.

Still, the threat of reversal looms. Historically, tokens entering fresh ATH zones often transition from accumulation to profit-taking phases.

If investors book profits aggressively, MYX could retreat toward $11.52 or even lower, erasing part of its recent gains.

Conversely, if holders remain resilient and resist selling pressure, MYX could breach its ATH of $18.91 and push past $20.00. Such a move would invalidate the bearish outlook, setting the stage for another leg higher.