MYX Finance pumped 400% to a new high! On-chain data, however, suggests that a bull trap is brewing?

The decentralized exchange (DEX) token MYX Finance (MYX) continues to surge strongly amidst controversy over airdrop manipulation accusations and potential bull traps, with a cumulative increase of over 400% this week, even hitting a historical high on September 11. However, mixed signals from the derivatives market data and technical indicators have led the market to start questioning whether this surge is merely a prelude to a "bull trap."

Airdrop manipulation allegations and official response

The on-chain analysis platform Bubblemaps accused MYX of manipulation during the token Airdrop, claiming that a single entity obtained over $170 million and that 100 new accounts participated using the same method.

MYX Finance quickly denied and emphasized that its DEX model is in line with the anti-witch hunt measures adopted during the Cambrian event, and promised to strengthen protections in the future. The official statement indicated that the event rewards are based solely on user trading volume and LP contributions, with no additional restrictions for high trading volume users.

Derivation market releases warning signals

(Source: CoinGlass)

CoinGlass data shows that MYX open interest (OI) has sharply dropped from Tuesday's historical high of $396.48 million to $314.93 million, indicating a rapid outflow of funds and a decline in trader interest.

At the same time, the Taker long-short ratio rose from 50.18% to 53.12% within 24 hours, indicating an increase in long positions; however, the decline in OI may put new long positions at risk of being trapped.

Technical Analysis: Extreme Overbought and Potential Pullback

(Source: Trading View)

As of September 11, MYX price has risen by 13%, closing up for the sixth consecutive day, entering a price discovery mode, with a target possibly pointing to the 1.272 Fibonacci level of $27.93 (calculated from the low of $1.13 and the closing price of $14.08).

RSI: Reaching 97, indicating extreme overbought conditions, which may trigger profit taking at any time.

MACD: The green bars continue to expand, indicating that bullish momentum is still increasing.

Support level: If it falls below 14.00 USD, it may test 8.21 USD (78.6% Fibonacci level)

bull trap possibility

Although the technical aspect and short-term momentum still lean bullish, on-chain and derivation data indicate that market funds are withdrawing while long positions are increasing. This combination of "declining OI + increasing longs" has historically been associated with short-term peaks or false breakouts, and investors should be cautious of the risk of a rapid reversal.

Conclusion

The recent explosive rise of MYX Finance has attracted a lot of attention, but in the context of extreme overbought conditions, withdrawal of derivation funds, and controversies surrounding Airdrops, this wave of market movement may not be a solid starting point for a bull run, but rather a carefully laid "bull trap." Short-term traders should strictly control risks, while long-term investors need to wait for prices and market sentiment to return to rationality before making their moves.