MYX Finance extended its decline over the past 24 hours, falling 25% to $0.1807. All this while its trading volume jumped 66.95% to reach $20.51 million.
This divergence suggests that market participation accelerated during the decline, rather than during an attempted recovery.
An increase in volumes accompanied by a sharp drop in prices is often a sign of aggressive distribution. Recent trading activity also appears to support this view. Now aAlthough high volume sometimes signals capitulation, in this case, buyers failed to establish significant support during the last session.
As a result, the market continued to incorporate downward pressure, while sellers maintained control over spot and derivatives trading activities.
Why are traders still strongly long?
Although MYX suffered one of its biggest daily declines in recent weeks, Binance traders continued to favor bullish positions. In fact,ata showed that 78.92% of top traders’ accounts were long, while only 21.08% held short exposure.
The imbalance pushed the long/short ratio to 3.74, highlighting strong bullish conviction despite worsening price action.
However, the persistence of long positioning has raised another concern. Traders continued to bet on a rebound even as MYX closed in on a major support zone.
Such positioning often increases the risk of liquidation every time the price falls.
Additionally, even though bullish sentiment seemed to dominate among Binance’s top traders, the market failed to reward this optimism. Instead, the growing disconnect between positioning and price performance suggests that leveraged long positions could be vulnerable to further pressure.
Demand zone faces another critical test for MYX
The altcoin’s price action returned to the key demand region around $0.165 after rejection from sellers. MYX from the $0.277 supply zone earlier this month. Buyers briefly attempted to defend higher levels following the June rally, but that rally quickly faded as selling pressure intensified.
The latest decline pushed MYX towards its support, placing a crucial technical level under further strain.
The RSI strengthened the weakened structure. The indicator fell to 39.35 after recently reaching overbought conditions above 70 – a sign that the bullish force has faded significantly.
Although the demand zone has attracted buyers repeatedly since April, each retest since has reduced the market’s ability to sustain rallies.
If buyers defend the current region, MYX could return to the $0.277 resistance zone. However, a decisive break below $0.165 would likely expose the token to a deeper correction and invalidate the prevailing support structure.
MYX Funding Signals Growing Caution About Derivatives
Finally, derivatives data revealed a notable change in sentiment as the IO-weighted funding rate turned negative. The metric fell to -0.0026% – evidence that short traders had started paying premiums to maintain their positions.
This development contrasts sharply with the extremely bullish positioning of Binance traders.
Negative funding rates usually appear when market participants expect a further decline. Recent price action also appears to support this expectation.
Previous funding figures remained broadly positive throughout May and early June, reflecting stronger speculative demand. And youAnd, sentiment weakened significantly following MYX’s rejection from higher levels.
Even though the funding rate remained slightly below zero, this change suggests that traders have become increasingly cautious.
This suggests that derivatives markets may be much less confident of an immediate recovery than Binance’s positioning data suggests.
Final summary
- MYX returned to major demand support after sellers erased the altcoin’s recent gains.
- Bullish positioning among traders has been high despite weakening technical and financing signals.
