MYX's Rocket Ride Sparks Fears of a Bullish Trap

MYX Finance (MYX) has surged past the $2.5 resistance level, sparking speculation about whether the token can break through to $4. The native token of the non-custodial decentralized exchange (DEX) has seen a dramatic price increase of over 167% in 24 hours, with its market capitalization now exceeding $800 million. This surge is attributed to a combination of factors, including the listing of the World Liberty Financial (WLFI) token, affiliated with former U.S. President Donald Trump, and the recent unlocking of 39.36 million MYX tokens, representing 3.94% of the supply. The sudden release of tokens has raised concerns among analysts that the rally could be a bullish trap set by large investors to offload their holdings at inflated prices [1].

The surge has also been fueled by record-high open interest (OI), with CoinGlass reporting OI at $244.49 million as of the latest data. This represents a sharp increase from $95.15 million on Sunday and suggests heightened trader activity. Analysts have highlighted that while the rally reflects strong market interest, it also carries risks of liquidation cascades should the price reverse. For instance, over $10 million in short positions were liquidated in a single day, with traders forced to cover their positions amid the rapid upward movement [4].

Technical indicators also paint a mixed picture of the market dynamics. The Relative Strength Index (RSI) for MYX has reached 91, indicating overbought conditions, while the Moving Average Convergence Divergence (MACD) and its signal line have crossed over, signaling a potential continuation of the bullish trend. On the 4-hour chart, the token’s price has moved well above the 50-EMA and 100-EMA levels, with a decisive breakout from a narrow trading range that had persisted for weeks [2].

Despite these technical signs of strength, several market observers have raised concerns about the legitimacy of the rally. Web3 influencer Dominic has suggested that the recent price movement could be a controlled pump-and-dump scheme, citing patterns such as small purchases converging to a central wallet and a sharp increase in OI across multiple exchanges. These patterns, observed on platforms like PancakeSwap, Bitget, and Binance, are often associated with artificial price manipulation. Additionally, a recent whale account reportedly sold $20,000 worth of MYX in multiple small transactions, raising further questions about the sustainability of the rally [3].

Looking ahead, analysts have outlined potential price scenarios based on key resistance and support levels. A close above the R5 pivot resistance at $7.15 could extend the rally into double-digit territory, with a potential target of $10. However, a reversal below the R2 pivot level at $3.65 could see the price retreat to the R1 level at $2.42. This volatility underscores the high-stakes nature of the current market environment, where large institutional actors may influence short-term price movements.

While the MYX Finance token has gained significant traction in the decentralized finance (DeFi) space, its rapid ascent has drawn comparisons to the August price surge, during which the token rose from $0.1 to $1.99 in just 17 days before collapsing. This pattern raises concerns that history could repeat itself, particularly if unlocked tokens are sold off in large volumes after the current rally. Analysts remain divided, with some believing the momentum is driven by genuine demand for DeFi innovation and others warning that the rally is largely speculative and unsustainable in the long term [5].

Source:

[1] title1 (https://www.fxstreet.com/cryptocurrencies/news/myx-finance-price-forecast-myx-takes-off-amid-wlfi-listing-token-unlock-202509081107)

[2] title2 (https://finance.yahoo.com/news/myx-crypto-why-did-myx-111950429.html)

[3] title3 (https://cryptodnes.bg/en/myx-finance-price-explosion-sparks-controversy-smart-money-rotates-into-best-wallet-token-presale/)

[4] title4 (https://beincrypto.com/myx-finance-price-surge-manipulation/)

[5] title5 (https://coinpedia.org/news/why-myx-finance-token-skyrockets-135-today/)