MYX Finance (MYX) has experienced a dramatic price collapse, plummeting nearly 40% in a single day to trade below $3.30. This follows a sharp breakdown from the critical $5.00 support level, with the token currently trading around $4.87, representing a 23% decline over the last 24 hours. The sell-off has been driven by a surge in bearish sentiment and aggressive short positioning in the derivatives market.
Market data reveals that futures traders have taken control, with funding rates turning negative, indicating a market dominated by short contracts. This imbalance suggests traders are positioning for further declines and could amplify volatility. The Money Flow Index (MFI) confirms heavy selling pressure and sustained capital outflows, though it has not yet reached oversold territory below the 20.0 mark.
Technical analysis points to a concerning pattern. MYX appears to be breaking down from a bearish ascending wedge formation, which often precedes sharp corrections. The pattern projects a potential 43% decline toward $2.81, aligning with the 1.78 Fibonacci extension level. A more immediate and realistic downside target lies near the $4.07 support zone (1.23 Fibonacci line). A confirmed break below $4.61 would increase the probability of testing this level.
The broader cryptocurrency market provides little relief. Bitcoin (BTC) has stalled around $67,000, failing to stage a notable recovery after dipping below $66,000. BTC is down 5% weekly, with its market dominance over altcoins dropping to 56.6%. The total crypto market cap remains below $2.4 trillion. While some altcoins like HYPE and HBAR posted modest 5% gains, and PIPPIN surged 11% daily, the severe weakness in MYX stands out.
A potential shift in the outlook for MYX would require a change in investor behavior. If the token becomes oversold and inflows begin to outweigh outflows, coupled with an unwinding of short positions, MYX could attempt stabilization. A decisive move above the $5.75 resistance level would be needed to invalidate the current bearish thesis and potentially drive the price toward $6.00.
