MYX Finance (MYX): Does the hot upward momentum conceal a potential bull trap?

Despite allegations of fraud and concerns about a potential bull trap, MYX Finance continues to maintain an impressive upward momentum. However, derivative indicators and technical analysis are sending mixed signals, indicating that market interest is gradually declining and the risk of forming a clear peak zone is becoming increasingly evident.

MYX Finance denies manipulation in token airdrop

Bubblemaps – an on-chain analysis platform – recently accused the airdrop process of the MYX token of being manipulated, with an entity suspected of seizing more than 170 million USD. The report also discovered up to 100 new accounts created in a similar manner, raising concerns about the transparency of this event.

Under public pressure, MYX Finance immediately denied all accusations, while affirming that its decentralized exchange model (DEX) has implemented many sybil attack countermeasures in the Cambrian campaign. (A sybil attack is a form where malicious actors create multiple false identities to control the network).

According to MYX, other campaigns do not impose limits but are based solely on trading volume and liquidity contribution (LP) of users. The project also emphasizes that they do not impose any barriers to large traders, as long as they complete the address change before the launch.

Looking towards the future, the MYX team is committed to implementing stricter and more comprehensive sybil prevention measures to strengthen community trust.

Derive data warns of bull trap risk

According to data from CoinGlass, the open contract (OI) of MYX has plummeted to 314.93 million USD, significantly down from the peak of 396.48 million USD recorded on Tuesday. This trend reflects a significant withdrawal of capital in the derivative market, while also indicating that the appeal for MYX is weakening.

Open contract of MYX | Source: CoinGlassContrary to that trend, the Taker buy/sell ratio has surged, with long positions accounting for 53.12% in the past 24 hours, compared to 50.18% on Wednesday. This discrepancy suggests that although general interest is waning, many traders are still risking to push long positions – and this could become a dangerous trap if the upward momentum is not sustained.

The long/short ratio of MYX | Source: CoinGlass## MYX hits a historic peak amid rising profit-taking concerns

At the time of publication, MYX surged an additional 13% on Thursday, marking a six-day consecutive increase and recording a breakout of over 400% in just one week. This DEX token is currently trading at its historical peak, officially entering the "price discovery" phase.

The current uptrend opens the possibility of reaching the Fibonacci level of 1.272 at 27.93 USD, established from the recovery between the bottom of 1.13 USD on Saturday and the closing price of 14.08 USD on Monday.

MYX/USDT daily chart | Source: TradingViewMeanwhile, the relative strength index (RSI) has climbed to 97, reflecting that buying pressure is in an extremely overbought state and poses a significant risk of profit-taking. However, the MACD indicator continues to record the expansion of green histogram bars, further reinforcing the signal to maintain bullish momentum.

Conversely, if MYX breaks through the 14.00 USD mark, this token is likely to retreat to test the 78.6% Fibonacci level at 8.21 USD.

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