MYX Finance price went parabolic in a high-volume environment on Monday, making it the best-performing cryptocurrency in the industry. It jumped by over 200%, reaching its highest level on record at nearly $15. This is notable as MYX was trading at $0.15 in July.
Why MYX Price Surged
MYX, a coin that was fairly unknown until Monday, came out of nowhere and became the best-performing asset in the crypto industry. Its daily volume soared to over $545 million, while its market capitalization surged to $1.27 billion.
The surge was notable because it happened on a day when MYX made no headlines. There was no exchange listing, no major partnership, or no upgrade, the three most significant catalysts that move cryptocurrencies.
The only positive thing about MYX Finance is that its perpetual exchange volume has been on an upward trajectory in the past few months.
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The platform handled a record $10.3 billion in assets in August, continuing a trend that started in February when it handled $1.6 billion. Its monthly volume has been on an uptrend in all months since February.
However, it is highly unlikely that the ongoing volume increase was the reason why it went on a short-squeeze. Instead, many users on the platform pointed to market manipulation as the main reason why it surged.
Why MYX Finance Price Will Crash Soon
There are a few main reasons why the MYX Finance price is about to crash soon. First, from a technical perspective, the surge happened as it moved from the accumulation phase of the Wyckoff Theory to the markup. This phase is usually followed by the distribution and markdown phases, which are characterized by high selling pressure.
Second, the MYX price will crumble as investors start to book profits following the recent parabolic move. It is common for investors to sell their tokens or stocks after an asset goes vertical.
Third, the token will plunge because there was no fundamental reason why it jumped. Ideally, the rally would likely hold steady if there were a major catalyst driving the price.
Furthermore, the futures market indicates that the weighted funding rate has shifted into the negative zone, suggesting that investors anticipate the price to be lower in the future than it is today.
Technicals also suggest that the coin is extremely overbought, as evidenced by the soaring Relative Strength Index (RSI) and the MACD indicators. A highly overbought asset tends to pull back.
Similarly, it is much higher than the short and long-term moving averages, indicating a potential mean reversion. Mean reversion is a situation where an asset drops and moves back to its historical averages.
Therefore, the combination of these technical and fundamental reasons explains why the coin will crash soon.
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