MYX Finance Lost 70% In a Week: What Triggered the Sharp Sell-Off?

MYX Finance experienced a severe weekly drawdown, losing 72% of its value and hitting a three-month low. However, on-chain data suggests this collapse was not due to deteriorating fundamentals or mass user migration. The Total Value Locked (TVL) only decreased by less than 10%, indicating core utility remains intact.

Derivatives metrics point to aggressive short-selling as the main trigger; persistently negative funding rates in perpetual futures markets show traders were betting heavily on further downside. This heavy short exposure amplified the downward momentum during a period of fear. Furthermore, the Money Flow Index (MFI) dropped below the 50 midpoint, confirming that sellers controlled momentum.

At the time of writing, MYX traded at $1.88, breaking the $2.00 psychological level. Key support levels to watch are $1.68 and $1.43; failure to hold these could lead to a drop toward $1.22. Conversely, a sustained move above $2.48 could signal a sentiment shift and potential recovery toward $3.00.

(Source：BeInCrypto)