MYX Under Fire as Liquidity Channels Dry Up – Can Key Support Hold?

MYX Finance faces mounting pressure as bearish momentum intensifies across both spot and derivatives markets. The altcoin has collapsed under selling pressure, with on-chain data revealing a concerning picture: liquidity conditions have deteriorated sharply, and trader conviction has shifted decisively toward the downside.

Derivatives Market Signals Flash Red

The derivatives landscape paints a cautionary tale for MYX bulls. Open Interest has contracted dramatically by 14%, sliding to $21.27 million as traders exit leveraged positions. More telling is the Open Interest-Weighted Funding Rate, which has turned deeply negative at -0.0140%, indicating overwhelming short-side dominance in perpetual markets.

Spot volume has followed suit, crashing from $171.96 million to just $44.74 million. When falling price meets shrinking volume, the technical picture typically confirms bearish control. Yet there’s a subtle shift: selling momentum appears to be decelerating, suggesting potential exhaustion among sellers.

On-Chain Health Deteriorates Rapidly

The real story unfolds on-chain, where liquidity has dried up at an alarming pace. MYX Finance’s Total Value Locked (TVL) has plummeted by approximately $1.16 million over just eight days, now sitting at $22.64 million according to DeFiLlama data. This hemorrhaging of capital reflects a deeper structural problem.

Protocol earnings have undergone a near-total collapse. October’s peak revenue of $16,685 has evaporated to merely $105 at present time – a staggering 99.37% decline. This revenue implosion directly signals depressed usage across the ecosystem, as transaction activity drives earnings. When revenue dries up this severely, reduced demand becomes self-reinforcing as users abandon the protocol in search of more productive alternatives.

Technical Picture: Bulls Cling to Support

Despite the bearish fundamentals, MYX’s short-term price structure offers a glimmer of hope. The token has positioned itself within an ascending channel, currently trading near the lower boundary. This technical setup could theoretically support a temporary bounce, allowing bulls a fleeting opportunity to stabilize price action.

However, this support structure remains precarious. The first critical downside level sits around $0.34, marking a recent higher low. Should buyers fail to defend this level, the next major support lurks near $0.23, where the channel originated. Breaking below either threshold would likely accelerate MYX’s broader downtrend and signal capitulation.

The Bottom Line

MYX Finance stands at an inflection point. While technical support remains intact in the near term, the protocol’s fundamental deterioration—evidenced by liquidity outflows, revenue collapse, and persistent trader pessimism—suggests recovery will prove difficult. Recovery hinges on whether demand can stabilize across both spot and derivatives markets before further liquidations test lower support levels.