The cryptocurrency world is buzzing after MYX Finance (MYX) surged nearly 1,400% in just a week, climbing to an all-time high of $18.42. But while excitement builds, onchain analysts warn of major red flags that could trigger a sharp correction of up to 85% in the coming weeks.
What is MYX Finance?
MYX Finance is a decentralized perpetual exchange that runs on a unique Matching Pool Mechanism (MPM).
Instead of using a standard order book or automated market maker (AMM), MYX matches traders through a shared pool. It first takes the opposite side of trades, then balances positions between longs and shorts, aiming for near-zero slippage similar to centralized exchanges—but fully onchain.
The platform supports USDC-margined contracts with up to 50x leverage and relies on a dual-oracle pricing system for reliability.
Why is MYX Price Soaring?
The recent MYX rally has been fueled by high-profile listings, speculative trading activity, and aggressive short squeezes.
Trump-linked WLFI Token Listing
On September 5, MYX Finance announced the listing of World Liberty Financial’s (WLFI) token, associated with Donald Trump and his family. The announcement quickly boosted interest, sparking MYX’s rapid climb.
Binance Alpha Listing and Retail FOMO
MYX’s visibility surged after being ranked among the best-performing airdrops and TGEs on Binance Alpha.
Early participants saw huge returns, with allocations jumping from around $5.92 per token to more than $8,100 in value per user, according to Binance Wallet data.
Open interest in MYX futures also topped $400 million, signaling a surge in derivatives trading and retail FOMO.
Short Squeeze Fuels Parabolic Rally
Massive short liquidations added fuel to the fire. Between September 6 and 10, traders liquidated $89.51 million in shorts versus just $23.45 million in longs, according to CoinGlass.
With limited circulating supply and heavy leverage trading, these forced buybacks drove MYX’s price to new record highs.
Analysts Warn of Red Flags
Despite the impressive surge, many analysts see warning signs ahead.
A 39 million token unlock coincided with the rally, suggesting early holders may be cashing out at inflated prices. Web3 commentators also flagged unusual trading volumes of $6–9 billion daily, alongside suspected whale coordination on Binance, Bitget, and PancakeSwap.
Technical indicators are flashing warnings too. MYX’s Relative Strength Index (RSI) spiked to 89–97, signaling extremely overbought conditions. The last time RSI hit similar levels in August, MYX suffered a 60% crash.
Could MYX Crash Next?
If history repeats, MYX could face a steep pullback. Analysts point to downside targets around its 20-day and 50-day EMAs, in the $2.72–$5.10 range. That would mean a 70–85% decline from its current highs.
Bottom Line
MYX Finance’s explosive rally has captured traders’ attention, but market risks are mounting. While the Trump-linked token listing, Binance Alpha boost, and short squeezes explain the meteoric rise, analysts caution that this rally may not be sustainable.
As with any high-volatility crypto, traders should proceed with caution—especially as signs of manipulation and overbought conditions grow stronger.
