The price of MYX Finance has increased by 41% today, but why are traders preparing for a collapse?

MYX Finance is experiencing impressive growth recently, bringing this altcoin close to its all-time high (ATH).

Although the bullish momentum has helped MYX rank among the best-performing tokens, the sentiment among traders remains polarized. While the overall market tends to rise, investors holding MYX and short-term speculators show contrasting signals.

The Shift in Perspective of MYX Finance Traders

Recently, the funding rate of MYX has dropped to its lowest level in the week as traders short this token. Many predict that this coin will reach a saturation point, leading to a reversal, and expect that MYX will lose momentum after the recent price surge.

However, the decline in the funding rate did not lead to the expected correction. On the contrary, short traders faced liquidation as MYX continued to grow. This development has the potential to neutralize bearish sentiment in the short term.

Funding Rate of MYX | Source: CoinglassThe squeeze momentum indicator is currently sending strong bullish signals, indicating that MYX's uptrend still has plenty of room. The green bars on the indicator show a squeeze release, which is often accompanied by prolonged price increases. Momentum continues to build rather than weaken.

This technical context shows that MYX Finance is resilient against pressure from short positions while simultaneously building a foundation for sustainable growth. As long as the capital flow remains, this altcoin has the potential to maintain its upward trend and recover what it has lost from recent corrections.

MYX momentum indicator | Source: TradingView## MYX price outlook towards ATH

At the moment, the price of MYX is trading at $16.17, up 41% in the past 24 hours. This strong increase has brought it close to reaching the all-time high of $19.98, set last week.

To be able to return to this level, MYX needs to maintain support at the level of $14.46. A successful bounce from this area will pave the way for a subsequent price increase towards $19.98, with the potential to extend up to $22.

MYX price analysis | Source: TradingViewOn the contrary, if investors decide to take profits, the bullish outlook could quickly weaken. A drop below $14.46 could cause MYX to face further declines, pulling the price down to $11.52 and invalidating the current bullish structure.

Mr. Giáo