MYX Finance has been under pressure in the last day, with sellers dominating market activity and causing the altcoin to drop by 11%.
Sentiment in on-chain and derivatives data has remained negative, indicating that there may be continued downside risk if demand does not pick up.
Increasing Liquidity Outflows
On-chain liquidity has seen a significant decline as bearish sentiment continues to grow with investors leaving the protocol.
The Total Value Locked (TVL) for MYX Finance has dropped by approximately $1.16 million over eight days, reaching around $22.64 million.
Source: DeFiLlama
AMBCrypto has identified a sharp decline in the protocol’s earnings in December as the primary driver behind the outflow.
Earnings for the protocol have plummeted from $16,685 in October to just $105, a 99.37% decline, indicating reduced protocol usage and increased selling pressure.
The combination of lower earnings and increased selling pressure points to weakening demand within the ecosystem.
Bearish Sentiment Among Perpetual Traders
Perpetual traders have shown a growing bearish sentiment in the market, with the Open Interest-Weighted Funding Rate turning negative.
Source: CoinGlass
This shift in sentiment has coincided with a 14% decrease in Open Interest, resulting in a $3.06 million outflow from the Derivatives market.
Additionally, Spot Volume driven by takers has seen a sharp decline, falling from $171.96 million to $44.74 million.
The falling price and shrinking volume confirm bearish conditions, although selling momentum appears to be slowing down.
Potential Price Movements
Chart analysis indicates that MYX is currently in a short-term bullish price structure.
Trading near the lower boundary of an ascending channel suggests a temporary bullish structure, which could lead to a brief bounce.
Source: TradingView
However, the overall structure remains fragile in historical context, with key downside levels to watch for.
If MYX fails to hold support levels at $0.34 and $0.23, the broader downtrend could be reinforced.
Final Thoughts
- MYX’s recent price weakness reflects underlying issues in liquidity, participation, and trader confidence.
- While short-term technical support remains, sustained recovery will depend on stabilizing demand in both spot and derivatives markets.
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