MYX Finance (MYX) fell more than 12% in the last 24 hours, while trading volume increased by 45%.
Despite this, the volume remained relatively low, around $25 million. Liquidity has also continued to weaken, with the liquidity-to-market capitalization ratio sitting at 0.96%, according to CoinMarketCap. The decline came as selling pressure intensified in the cash and derivatives markets.
Why is MYX facing heavy sales?
MYX’s decline this month appears to coincide with large token transfers linked to a multisig wallet.
According to Arkham data, more than 17.96 million MYX tokens worth $2.46 million were transferred from a Gnosis Safe Proxy wallet to Bitget. Another wallet transferred 50 million MYX, worth $6.41 million.
On top of that, 12 million MYX tokens worth over $1.5 million were transferred from a Bitget cold wallet to a hot wallet. Although these transfers do not confirm the sale, they generally increase the likelihood that the tokens will enter circulation.
In total, approximately 80 million MYX tokens worth approximately $10.4 million have become available for potential distribution.
The market seemed unable to absorb this supply, which added pressure on price developments.
In fact, long liquidations have increased over the past 12 hours. More than $230,000 of long positions were liquidated, compared to just $7,400 of short positions. This suggests that the leveraged bulls were caught on the wrong side of the move.
On top of that, open interest dropped sharply from over $3 million to around $2 million. Holder revenues also fell to zero, signaling lower protocol activity.
Can MYX avoid a deeper decline?
MYX fell below the support of a triangle pattern at $0.1876.
The daily chart shows that the token has been trading in this structure since March. This means that the recent weakness emerged after months of consolidation.
Additionally, the Cumulative Volume Delta (CVD) highlighted continued selling pressure in the Binance derivatives market. At press time, approximately 26.64 million MYX contracts were positioned short. This suggests that bearish traders remained active despite a 0.49% rise in the broader crypto market over the past day.
However, the advance/decline ratio (ADR) improved from 0.48 to 1.83. This change suggests that selling pressure may be easing.
If buyers reclaim $0.1876 and break above the triangle resistance, the breakdown could turn out to be a counterfeit. Otherwise, MYX could remain under pressure as bearish sentiment continues to dominate.
Final summary
- MYX fell more than 12% after large token transfers increased fears of additional supply entering the market.
- A recovery above $0.1876 could invalidate the breakdown, while failure to reclaim support could extend losses.
