Whales, Short Squeezes, and a DeFi Gamble: Is MYX’s Surge Built to Last?

MYX Finance’s native token, MYX, has experienced a dramatic 200% surge in recent trading sessions, reaching an all-time high of approximately $15. The price spike has drawn significant attention from traders and analysts alike, with some viewing it as a potential breakthrough for the decentralized exchange (DEX) platform and others raising concerns over signs of manipulation and overbought conditions. Despite the rapid rise, market fundamentals and technical indicators suggest the momentum may be unsustainable, raising the possibility of a sharp correction.

The surge coincided with a listing of the WLFI token, associated with the Trump family, on the MYX platform. This event, combined with a short squeeze effect and the anticipation of the MYX V2 upgrade, has fueled much of the speculative activity. The upgrade, slated for late September 2025, is expected to introduce features such as zero slippage and cross-chain support, potentially enhancing the platform’s appeal within the decentralized finance (DeFi) sector. However, these developments do not fully explain the magnitude of the price movement, prompting skepticism about the underlying market dynamics.

According to CoinGlass data, the MYX token led the liquidation chart during the recent price rally, with $11.47 million in long positions and $53 million in short positions wiped out. This mass liquidation is typically associated with heightened volatility and could signal a shift in market sentiment. Additionally, open interest and trading volume have surged, with spot volume hitting over $545 million and the perpetual futures market experiencing more than a doubling in open interest in a single day [1]. These metrics highlight the intense speculative activity but also raise concerns about market fragility.

From a technical perspective, the Relative Strength Index (RSI) for MYX has entered extreme overbought territory, a condition often followed by a pullback or correction. Analysts have noted that while there is no immediate bearish divergence, the limited upside potential suggests the market is primed for a reversal. The token’s price has already moved well above key short- and long-term moving averages, indicating a possible mean reversion. Furthermore, the weighted funding rate in the futures market has turned negative, signaling bearish expectations among traders [3].

Concerns over potential manipulation have also intensified. Some analysts, including MrsBeastDeFi, have raised red flags about coordinated whale activity and suspicious trading patterns. Social media chatter and KOL engagement remain low despite the explosive price action, suggesting the rally may be artificially driven. Critics argue that the token’s limited fundamentals—such as a total value locked (TVL) of just $32 million—do not justify its derivatives trading volume of over $9 billion, deepening suspicions about market integrity.

While the MYX V2 upgrade and potential DeFi adoption may offer long-term value, the current rally appears to be driven more by speculation and short-term momentum than by sustainable demand. With whales beginning to offload their holdings and the market entering overbought conditions, a reversal seems increasingly likely. Investors are urged to remain cautious and to monitor both technical and on-chain indicators for further guidance.

Source:

[1] MYX Finance Token Soars 270% in 24 Hours, But Red Flags Emerge – What to Know (https://coingape.com/trending/myx-finance-token-soars-270-in-24-hours-but-red-flags-emerge-what-to-know/)

[2] MYX Finance Hits All-Time High Amid Criticism – Analysts Think New Altcoin is the Next 1,000x Crypto (https://coincentral.com/myx-finance-hits-all-time-high-amid-criticism-analysts-think-new-altcoin-is-the-next-1000x-crypto/)

[3] Why MYX Finance Price is Surging and Why a Crash is Coming (https://www.banklesstimes.com/articles/2025/09/08/why-myx-price-is-surging-and-why-a-crash-is-coming/)