MYX Price Prediction: Short Squeeze or Trend Reversal? Analysis of MYX Breaking the $3 Key Signal

MYX Finance (MYX) has risen about 8% in the past 24 hours, with the price temporarily breaking through the important technical and psychological level of $3, triggering widespread market attention. Several analysts believe that this rally is driven by the price breaking through the downward channel, coupled with increased trading volume and a rebound in short-term open interest, quickly shifting market sentiment.

According to AMBCrypto analysis, after breaking through the technical structure, MYX’s initial target was set at $3.45. However, the market developed beyond expectations, with the highest price reaching $3.9 on December 15, indicating strong bullish momentum. Currently, $3.45 has transformed from a previous resistance level into a potential support zone; holding firm above this area could open room for further upward movement.

From a structural perspective, the short-term supply zone at $3.20 and the key level at $3.45 are considered important nodes for a trend reversal to bullish. The high trading volume over the past five days confirms the validity of this breakout. Although the long-term trend has not yet fully reversed, MYX’s price structure has improved significantly over the past six weeks. The OBV indicator continues to rise, and the moving average system shows momentum gradually favoring the bulls.

However, derivative markets have sent some warning signals. Open interest has been declining over the past several days, and funding rates have turned significantly negative within the last 36 hours, indicating that some traders are closing positions, and market sentiment is leaning towards defense or even shorting. This phenomenon suggests that recent gains may be partly driven by short squeeze, and a quick pullback cannot be ruled out in the short term.

From the data platform perspective, MYX’s 24-hour long/short ratio is approximately 0.96, indicating relatively balanced buying and selling forces. The price breaking through $3.7 appears more like a short covering move. Nevertheless, the daily chart still maintains a bullish structure, and in the context of Bitcoin’s weakness, MYX has performed relatively resiliently.

Overall, the $3.33 to $3.52 range constitutes a short-term demand zone. If the price falls below $3.26, the short-term bullish thesis will be invalidated; conversely, if it can hold above $3.45, the probability of testing the $4.2 resistance level remains higher than a trend reversal. For traders, at this stage, it is important to align with the price structure while remaining cautious of volatility after the short squeeze ends.