MYX Finance [MYX] is up more than 13% in the past 24 hours after a long period of downtrend. The altcoin’s total gains over the past week have surpassed 26%, while the monthly change is positive at 8.34%.
Prior to this rally, some altcoins had started recovering from their consolidations. That said, can MYX Finance sustain the breakout?
MYX Finance breaks out of triangle pattern
The 4-hour chart showed the altcoin was trading toward the top of the triangle pattern as it broke resistance levels. The triangle consolidation had lasted for more than a month before breaching the slanting resistance at $0.07226.
MYX confirmed the breakout with a triple retest at $0.07226. Bulls on the Binance exchange were responsible for the breakout as per the top traders’ long and short ratios for accounts.
About 75% of the top traders were long, while 25% of them were shorting. For all accounts, including retailers, the ratio was 3.357. The Long/Short ratio for top trader positions was 1.295.
On top of that, the RSI Divergence signaled bullish and a rising reading of 76.58.
Still, bears were very present at around $0.09, explaining why MYX was struggling to surpass the zone. However, if this level is breached, the altcoin may surge to $0.12, which is the most recent lower high (LH).
Past the $0.12 level, the next significant area of supply sits at $0.1582. Even so, it remains debatable whether the altcoin can reach or exceed the LH at $0.1582.
Why is the MYX rally likely to continue?
The rally is likely to continue when exploring what derivative and spot traders were doing.
For instance, the daily token trading volume was increasing, indicating spot accumulation. Over the past two days, it has added $2 million, increasing from $6 million to $8 million.
Additionally, there were long orders of 10x, 15x, and 20x leverage worth over $500K on Binance compared to $170K in shorts. This hinted that leverage had a hand in fueling the price of MYX higher.
As bulls continued to increase their leveraged longs between $0.0689 and $0.0867, short liquidations were spiking. This created a short squeeze, further amplifying the gains.
In fact, the move resulted in the largest hourly liquidations over the past week with almost no long liquidations. About $10K worth of short orders were wiped out, while buyers lost only $90.
Therefore, MYX’s rally continuation remains plausible but is subject to the uncertainties in the crypto markets.
Final Summary
- MYX Finance rallied over 13% in the past 24 hours after breaking out of a triangle pattern.
- Traders were leveraging their longs as shorts faced massive liquidations, but continuation was still dependent on market conditions.