MYX Finance has stayed in the hot seat over the past day, with sellers dominating market activity as the altcoin plunged 11% during this period.
Sentiment across on-chain and derivatives data stayed weak. That weakness suggested downside risk may persist if demand failed to recover.
Liquidity outflows intensify
On-chain liquidity has declined sharply, with bearish sentiment strengthening as investors continue to exit the protocol.
Total Value Locked (TVL), a key metric that measures a protocol’s health based on investor deposits, points to a fragile outlook.
According to DeFiLlama data, MYX Finance’s [MYX] TVL fell by roughly $1.16 million over eight days. It dropped to about $22.64 million.
AMBCrypto traced the primary driver of this outflow to a sharp decline in the protocol’s earnings in December.
The protocol, which recorded peak earnings of $16,685 in October, has seen revenue collapse to just $105 as of press time. This represented an unprecedented 99.37% decline.
Lower earnings suggested reduced protocol usage, since revenue depended on transaction activity. At the same time, unlocks and withdrawals added selling pressure.
That combination pointed to weakening demand across the ecosystem.
Perpetual traders turn bearish
Perpetual traders have increasingly tilted toward the bearish side of the market.
The Open Interest-Weighted Funding Rate turned negative, signaling short-side dominance. At press time, it printed around -0.0140%.
This shift has coincided with a notable 14% decline in Open Interest, which fell to $21.27 million, reflecting a $3.06 million outflow from the Derivatives market.
On top of that, taker-driven Spot Volume declined sharply. Volume fell to $44.74 million from $171.96 million earlier.
Falling price alongside shrinking volume typically confirm bearish conditions. Even so, selling momentum appeared to be slowing.
Possible price movement
Chart analysis showed that MYX has moved into a short-term bullish price structure.
MYX traded near the lower boundary of an ascending channel, suggesting a temporary bullish structure. That positioning could allow a short-lived bounce.
However, the broader structure remained fragile when viewed in historical context.
That setup left traders focused on two key downside levels. The first sat near the recent higher low around $0.34. Below that, the channel’s origin near $0.23 marked the next critical support.
A failure to hold either level could reinforce MYX’s broader downtrend.
Final Thoughts
- MYX’s recent price weakness reflected broader cracks in liquidity, participation, and trader conviction.
- While short-term technical support remained intact, sustained recovery may depend on demand stabilizing across both spot and derivatives markets.
