MYX slides 18% while OI climbs to $25M – Is a squeeze brewing?

MYX Finance [MYX] faces a deteriorating price outlook as the asset extends its losses. The weakness in price aligns with soft fundamentals, as the protocol struggles to generate sufficient revenue to cover operational costs.

In the near term, derivatives activity is driving market direction. Positioning across perpetual markets, whether dominated by longs or shorts, is shaping MYX’s short-term price trajectory.

Funding Rates signal short dominance

Perpetual futures activity has reinforced downside pressure. Over the past 24 hours, MYX declined 18%, at press time, with momentum accelerating during the move.

At the same time, CoinGlass data showed that the Funding Rate dropped to -1.0858%. A negative rate indicates that short positions are paying longs, reflecting a market skewed toward bearish positioning. Current price action confirms that sellers are exerting control.

Notably, the negative Funding Rate has not triggered capital flight. Open Interest (OI) rose by 1%, adding approximately $250,000 and bringing total outstanding positions to roughly $25 million.

Typically, sharp negative funding coincides with declining OI as traders unwind exposure. In this case, capital remains in the market, suggesting active participation rather than broad liquidation.

Exchange-level divergence in positioning

Despite short dominance at the aggregate level, exchange-specific data reveal divergence.

Long/Short Ratios across Binance, Bybit, KuCoin, and BingX show higher long participation. Bybit leads, with 51% of total perpetual volume attributed to long positions.

Bybit’s positioning carries added weight, given its substantial share of MYX’s Open Interest and trading volume. This divergence suggests that while overall funding skews negative, certain trader cohorts are positioning for a potential rebound.

Spot market flows show signs of selective accumulation. In the past 24 hours, MYX recorded about $224,000 in net capital inflows. Compared to its typical daily buy activity, this marks a notable uptick in demand.

Liquidity clusters define near-term structure

The liquidation heatmap highlights significant liquidity clusters above the current price. Such concentrations often act as short-term magnets, as price tends to move toward areas with dense leveraged positions.

The presence of larger clusters overhead increases the probability of a liquidity-driven upside move. Downside liquidity remains visible below current levels, though the depth is comparatively smaller than the upside clusters.

As a result, while the broader trend remains bearish, the current liquidity structure leaves room for short-term upside volatility driven by derivatives positioning and liquidation dynamics.

Final Thoughts

• Short sellers account for a significant share of liquidity in the derivatives market.
• Traders on Bybit, CoinEx, and BingX are increasing long exposure despite elevated downside risk.