MYX Finance recorded one of the most significant weekly drawdowns in the digital asset market. The token has plummeted 72% in the past seven days, underperforming most comparable altcoins. The sell-off erased months of gains and pushed MYX to a three-month low.
At first glance, such breakdowns often indicate protocol failure or reduced usefulness. However, on-chain data and derivative metrics tell a different story.
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MYX Finance remains strong in the DeFi space
A sharp decline typically raises concerns about demand decline or user migration. Investors often look at Total Value Locked (TVL) to assess the health of a platform. In decentralized finance, TVL measures the amount of capital secured within a protocol’s smart contracts.
MYX Finance’s TVL has fallen by about $2 million since the beginning of the month. It decreased from $22.27 million on January 31st to $20.27 million today. Although this decline reflects some capital flight, it does not indicate a collapse of the system. This reduction represents less than 10% of the total value locked.
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This gradual decline suggests that users are not leaving en masse. Core utilities appear to be intact. This data suggests that the price crash was not caused by a dramatic drop in platform adoption.
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Traders are eager for MYX price to fall
Derivatives data provides more powerful insight into recent volatility. The funding rate in the perpetual futures market reveals whether traders are leaning long or short. When funding becomes significantly negative, short sellers gain the upper hand and pay fees to long holders.
MYX has been rising sharply, reflecting intense bearish pressure, and its funding rate has continued to be negative. This pattern indicates that traders are actively opening short-term contracts. This imbalance suggests speculation of continued decline rather than a reaction to deteriorating fundamentals.
Such positioning can accelerate price movements. Short-term, high-dose exposures amplify the downward momentum during periods of fear. In the case of MYX, the continued negative funds indicate that sentiment, rather than utility losses, is the major cause of the decline.
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How are MYX holders doing?
The Money Flow Index (MFI) further supports this view. MFIs track capital inflows and outflows using a combination of price and volume. A move below the neutral 50 level indicates increasing selling pressure.
MYX MFI is below its midpoint, confirming that MYX sellers are currently controlling the momentum. This change reflects growing fear, uncertainty and doubt among traders. As liquidity becomes thinner, price declines can quickly intensify.
Historical patterns provide additional context. The last time MYX MFIs decisively transitioned from buying pressure to selling pressure, the token fell by 50%. This reduction rate has already reached 72%. This trend is likely to continue until the MFI approaches the oversold zone. In this zone, selling pressure typically begins to dissipate.
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MYX price crash
At the time of writing, MYX is trading at $1.88. The token fell below the psychological $2.00 level, hitting a three-month low. The 72% weekly decline reflects extreme short-term weakness and heightened volatility.
Further downside risk increases if MYX fails to sustain the $1.68 support level. A breakdown could take the token closer to $1.43. Losing this support will expose the next important level around $1.22 where buyers may try to stabilize the price action.
Conversely, changes in sentiment can occur rapidly in the cryptocurrency market. Additions could begin if investors view current levels as undervalued. A sustained rise above $2.48 would indicate improving strength. As MYX approaches the $3.00 mark, regaining that level as support could invalidate the bearish outlook.
