MYX Finance has encountered significant selling pressure lately, with the altcoin dropping 48% from its previous highs and falling beneath $10. This decline occurs amid a generally bearish market environment.
Nevertheless, technical indicators and a change in correlation with Bitcoin indicate a potential rebound might be imminent.
MYX Finance Is Still Performing Strongly
The Relative Strength Index (RSI) suggests that bullish momentum in MYX remains effective despite the steep decline. The indicator consistently stays above the neutral 50.0 level, signaling resilience. This strength indicates that even amid market volatility, MYX is set to make a recovery.
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For several days, MYX has remained above this level, resisting further bearish pressure. This consistent performance underscores investor confidence in the altcoin’s medium-term outlook. If this positive momentum continues, MYX could be one of the few tokens to decouple from unfavorable macro market conditions and gain value.
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MYX Finance is also showing divergence from Bitcoin, which could significantly impact its price trajectory. The correlation between MYX and Bitcoin has decreased to 0.46, indicating a diminishing reliance on Bitcoin’s movements. This decoupling is crucial given Bitcoin’s recent issues.
If the correlation continues to weaken and turns negative, MYX may chart its own path, independent of BTC’s bearish trends. Such divergence has historically aided altcoins with strong fundamentals, enabling them to recover even as Bitcoin consolidates or declines further. MYX may be entering such a scenario.
MYX Price Establishes Key Support
MYX is currently trading at $9.03, remaining just above the pivotal $8.90 support. The altcoin’s decline followed its inability to surpass its all-time high of $19.98, resulting in nearly a 50% reduction in value. Staying above $8.90 will be crucial for any recovery efforts.
If bullish signals materialize, MYX could rebound from support and exceed resistance at $10.54. Clearing this barrier would pave the way towards $14.04, enabling the token to recover much of its recent 48% drop. Strong demand will be essential to maintain this upward movement.
However, downside risks persist. If investors pull their support, MYX could dip below $8.90 and extend its decline towards $7.00 or lower. Such a scenario would invalidate the bullish outlook and push the altcoin back into a significant downtrend.
