MYX Finance has confronted considerable selling pressure recently, with the altcoin experiencing a dramatic plunge of 48% from its recent highs, now trading below the $10 mark. This substantial decline occurs within a broader bearish market context, creating a troubling backdrop for many investors.
Despite the prevalent negativity, emerging technical indicators coupled with a notable shift in correlation with Bitcoin hint at a possible rebound on the horizon for MYX Finance.
MYX Finance Is Still Running Strong
The Relative Strength Index (RSI) reveals that MYX demonstrates persistent bullish momentum, even amid its steep decline. Remarkably, this technical indicator continues to stay above the neutral level of 50.0, portraying a picture of resilience. Such strength implies that regardless of prevailing market volatility, MYX seems well-positioned to stage a robust recovery.
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For several consecutive days, MYX has maintained its position above this critical threshold, fending off deeper downturns. This steady performance showcases a degree of investor confidence in the altcoin’s medium-term potential. Should this favorable momentum endure, MYX could emerge as one of the select tokens capable of decoupling from the broader negative market trends and realizing gains.
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Additionally, MYX Finance is beginning to show a divergence from Bitcoin, a development that could critically influence its price trajectory. The correlation between MYX and Bitcoin has recently dropped to 0.46, highlighting a diminishing dependence on Bitcoin’s price movements. This decoupling is significant, particularly within the context of Bitcoin’s ongoing struggles.
If this correlation continues to decline, potentially turning negative, MYX might carve out its own path independent of BTC’s bearish trend. Historically, such divergences have favored altcoins boasting strong fundamentals, providing them with the opportunity to recover even as Bitcoin consolidates or further retracts. MYX may be heading toward that favorable scenario.
MYX Price Establishes Crucial Support
Currently, MYX is priced at $9.03 and is maintaining its position just above the crucial support level of $8.90. This recent decline came after the altcoin struggled to breach its all-time high of $19.98, effectively halving its value. Holding above the $8.90 support line will be pivotal for any recovery attempts moving forward.
Should the emerging bullish signals play out positively, MYX could bounce off this support and aim to breach resistance at $10.54. Successfully clearing this threshold would pave the way towards $14.04, enabling the token to recover from much of its recent 48% decline. Sustaining such a move will depend heavily on strong demand from investors.
Nonetheless, there are still downside risks to be mindful of. Should investors withdraw support, MYX could decline below the $8.90 threshold, potentially spiraling downward toward the $7.00 mark or lower. Such a scenario would invalidate any previous bullish expectations, relegating the altcoin back to a severe downturn.
