Momentum returns as buyers press into supply
MYX snapped back with a sharp 14% daily gain, thrusting price into a well-defined sell-side pocket around $3.2. The rebound follows a period of sideways action that compressed volatility and set up an impulsive move once bids stepped in. With liquidity building just above spot, bulls are now attempting to squeeze through a congested zone that has capped advances multiple times in recent sessions.
The tone is constructive: intraday dips are being defended quicker, and the order flow shows buyers increasingly willing to lift offers rather than wait on the bid. Still, the $3.2 region remains the near-term line in the sand. A firm close above it would mark a transition from reactive rallies to a sustained markup phase.
Key takeaways
- Price popped 14% and is pressing into a liquidity cluster around $3.2.
- Repeated supply has previously rejected rallies in this zone, making it a pivotal battleground.
- A clean break and hold above $3.2 would expose $3.35–$3.50, with momentum extension possible toward $3.80.
- Failure to clear may drag MYX back into $2.85–$2.95 for liquidity sweep and re-accumulation.
Technical snapshot
MYX’s structure has shifted back to higher lows on the 4H chart, with momentum indicators curling up in support of trend continuation. The $3.2 area coincides with a prior distribution shelf and an area where aggressive shorts have historically layered offers. Bulls will want to see expanding volume on green candles as price approaches this wall; without that, the risk of another fade increases.
- Market structure: Higher low sequence intact above the $2.90–$3.00 base.
- Momentum: Momentum gauges are above neutral, reducing downside velocity on pullbacks.
- Liquidity: Resting asks concentrated $3.18–$3.25; thin air pockets appear beyond $3.30.
- Invalidation: A daily close back below $2.90 would weaken the breakout thesis.
Liquidity and derivatives color
The heat around $3.2 reflects a liquidity cluster where both stop orders and resting asks have accumulated. If price forces through this pocket, stop-driven buying could accelerate the move, creating a quick push into the mid-$3.3x range. On the derivatives side, traders typically watch funding and open interest during such pushes: supportive funding coupled with rising open interest can confirm that fresh longs are driving the advance rather than just short covering.
Conversely, if a breakout attempt stalls while open interest climbs rapidly and funding overheats, the setup becomes vulnerable to a squeeze back into the range to flush late longs.
Scenarios to watch
- Bullish continuation: Acceptance above $3.2 on expanding volume and positive momentum opens $3.35–$3.50. Holding these levels intraday turns them into a launchpad for $3.70–$3.80.
- Range rejection: Failure at $3.2 followed by lower highs likely sends MYX into a $2.90–$3.05 chop, with liquidity sweeps below $2.95 offering potential higher-low attempts.
- Deeper pullback: A decisive break below $2.90 and failure to reclaim it quickly could revisit $2.75–$2.80, where stronger demand previously emerged.
What would validate a breakout?
- Strong 4H or daily close above $3.2 with sustained buy-side volume.
- Shifting liquidity: offers at $3.2 get absorbed and flip to bids on retest.
- Constructive derivatives: steady funding and rising open interest without blow-off extremes.
- Healthy pullbacks: shallow retracements that hold prior resistance turned support.
Risk check
As price compresses beneath resistance, volatility can spike. Whipsaws around $3.2 are common when clusters of stops sit on both sides of the level. Traders often mitigate this by waiting for confirmation on a retest or by sizing for wider ranges around eventful levels. Keep an eye on broader market cues; if the wider crypto complex turns risk-off, even strong local structures can unwind quickly.
Bottom line
The 14% rebound has put MYX right where it needs to be: testing the $3.2 liquidity barrier that has repeatedly dictated near-term direction. Clear it with conviction, and the path of least resistance shifts higher. Fail here again, and the market likely reverts to range behavior until fresh catalysts arrive. For now, momentum favors the bulls—but the next few candles at $3.2 will tell the tale.
FAQ
- Why is the $3.2 level important for MYX?
- It’s a liquidity cluster where resting sell orders and prior distribution meet. Clearing it signals that supply has been absorbed and can unlock higher prices.
- What confirms a breakout versus a fakeout?
- A strong close above $3.2, rising volume, supportive derivatives, and a successful retest that turns the level into support point to a real breakout.
- What are the immediate upside targets if $3.2 breaks?
- Watch $3.35–$3.50 first, then $3.70–$3.80 if momentum extends and liquidity thins overhead.
- Where does the bullish view weaken?
- A breakdown and daily close below $2.90 would undermine the higher-low structure and raise the odds of a deeper pullback.