MYX Finance [MYX] had a difficult start to the day, sliding 11% as market conditions shifted in favor of bears on the 5th of January.
Despite sellers maintaining control, market data showed buyers stayed active, keeping the probability of a rebound elevated.
Why did the market decline?
The recent pullback appears tied to heavy profit-taking in the perpetual market over the past day.
This activity is reflected across three key MYX perpetual indicators. Its Open Interest dropped by approximately $16.7 million during the period, signaling a reduction in the total value of outstanding MYX contracts in the perpetual market.
Despite the scale of capital outflows, MYX total liquidations—positions forcefully closed after hitting stop-loss levels—remained limited at just $1.02 million.
This suggested that roughly $15.68 million worth of the altcoin’s positions were intentionally closed by traders, likely taking profits rather than being forced out. That may have briefly pressured the price as positions changed hands at lower levels.
Further supporting this view, MYX Open Interest–Weighted Funding Rate remained positive throughout the decline.
A positive Funding Rate indicates that most open positions are bullish, suggesting sentiment continues to lean to the upside despite the pullback.
On-chain activity sees modest growth
On-chain activity has recorded modest growth, even as protocol revenue remains relatively low, rising from $5 to $18.
Total Value Locked (TVL), which tracks the amount of liquidity committed to protocols, has continued to increase despite price weakness.
Since the 1st of January, TVL has risen by approximately $720,000, pointing to sustained conviction among investors who continue to lock the tokens for periodic rewards and a longer-term outlook.
Additional metrics reinforce this trend. Perpetual Trading Volume on decentralized exchanges increased sharply.
Over the past day, the aforementioned Volume climbed by $66.24 million, while Cumulative Volume over the last seven days reached $1.936 billion.
Rally or further decline?
The Liquidation Heatmap supported a potentially bullish outlook for MYX, as liquidity clusters remain largely concentrated above the current price.
These clusters represent zones of unfilled orders on the chart and often attract price movement, acting as liquidity magnets.
With more liquidity positioned above the price, MYX may attempt an upward move to fill these orders.
This view is further reinforced by the dominance of long positions in the perpetual market, strengthening the case for a potential rebound.
For now, the recent decline appears to represent a corrective phase, with the likelihood of a recovery remaining high.
Final Thoughts
- MYX’s decline stemmed mainly from profit-taking in perpetual markets rather than forced liquidations.
- Despite the price drop, positive Funding Rates, rising TVL, and growing on-chain activity suggested buyers retained conviction.
