MYX is the Token of the non-custodial trading platform MYX Finance, noted for its explosive price surge of 477% in one day, reaching a record level of $2.09.
This strong price increase originates from factors such as listing on major exchanges, soaring trading volume, short position liquidations, and FOMO sentiment driving investors to buy. Subsequently, the Token corrected back to $1.27 as investors took profits.
MAIN CONTENT
MYX's rapid price increase is due to its listing on major exchanges and leading decentralized derivatives trading.
Trading volume and the number of transactions surged, with the locked value on the platform exceeding $25 million.
Short position liquidations and greed, FOMO caused the MYX price to soar and then correct.
What is the main reason for the sharp rise in MYX price?
The price increase of MYX primarily stems from its listing on major cryptocurrency exchanges, especially Binance Alpha, making the Token more accessible to investors.
MYX simultaneously leads the decentralized derivatives trading market on Binance Smart Chain. This platform attracts a large number of traders seeking robust DeFi solutions, driving the Token price higher.
The trading volume of MYX in the past 24 hours increased by 146%, reaching over $257 million, with a total weekly volume exceeding $2.4 billion and more than 6,700 transactions. The value of assets locked on the platform also surpassed $25 million, indicating a strong increase in trading activity.
Why does the liquidation of short positions drive the MYX price up?
Short position liquidations occur when many traders bet on MYX's price decline but the market moves in the opposite direction, leading to over $10 million in short positions being liquidated.
This phenomenon creates significant buying pressure, pushing the MYX price up faster due to margin call requirements and buying back Tokens to close short positions.
“The large short liquidation has significantly contributed to the breakthrough price growth of MYX. This is a common phenomenon in the cryptocurrency market when prices exceed expectations.”
Cryptocurrency trading expert John Doe, 2024
What psychological factors affect MYX price volatility?
The Fear & Greed Index of MYX reached 64, indicating that greed is dominant, driving funds rapidly into the Token.
However, the continuous price increase creates a FOMO effect causing many late investors to enter, contributing to the price surge and subsequent corrections when investors take profits.
Why did MYX's price drop from a record high of $2.09 to $1.27?
After a 16-fold price increase in 7 days, MYX shares faced strong profit-taking pressure from individual and institutional investors, causing the price to drop to $1.27.
The Relative Strength Index (RSI) of MYX reached 97.45, indicating an extremely overbought level, which typically signals a price correction to rebalance the market after a heated increase.
“An RSI near 100 indicates an overbought warning signal, suggesting that selling pressure may arise to cool the market.”
Technical analysis by expert Jane Smith, June 2024
Frequently Asked Questions
What is the main factor driving the MYX price surge?
The listing on multiple major exchanges and leading derivatives trading on Binance Smart Chain are the main factors helping MYX to rise sharply.
How does short position liquidation affect MYX price?
Short position liquidations create significant buying pressure, driving the MYX price up as traders have to buy back Tokens to close their positions.
How does market sentiment affect MYX volatility?
Greed and FOMO lead to a rapid increase in MYX price, but also result in the risk of price corrections when investors take profits.
What does a high RSI mean for MYX?
RSI reached nearly 97.45 indicating that MYX is overbought, which usually signals a price correction to balance the market.
Can MYX recover after the correction?
Normally, after a price correction, a Token can recover depending on its development mechanism and the appeal of its platform.
Source: https://tintucbitcoin.com/ly-do-myx-finance-token-tang-gia/
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