MYX plunges 72% amid short pressure

MYX plunged 72% over the past week to $1.88, marking one of the steepest drawdowns in the digital asset market and erasing months of gains.

Despite the sharp sell-off, MYX Finance’s total value locked fell by only around $2 million to $20.27 million, a decline of less than 10% that suggests core protocol demand remains relatively stable.

Derivatives data shows persistently negative funding rates in perpetual futures markets, indicating traders have aggressively opened short positions and are paying to maintain bearish exposure.

The imbalance in short positioning appears to have amplified downward momentum, signalling that sentiment-driven speculation rather than collapsing fundamentals drove much of the decline.

The Money Flow Index has dropped below the neutral 50 level, confirming that sellers currently control momentum and reflecting heightened fear, uncertainty and doubt among market participants.

Technically, MYX has broken below the key psychological $2.00 level, with $1.68 identified as immediate support and further downside risk toward $1.43 and $1.22 if that threshold fails.

A sustained recovery above $2.48 would indicate improving sentiment and could invalidate the bearish outlook, potentially opening a path back toward the $3.00 level if buying pressure strengthens.