MYX Finance (MYX) slid about 11% on January 5 as traders pared back perpetual positions, but several on-chain and derivatives signals suggest the dip may be corrective rather than the start of a deeper sell-off. What happened - Price action: MYX weakened early in the session as sellers dominated intraday trade, driving an ~11% drop. Despite the move, buyers remained active, keeping the odds of a rebound elevated. - Perpetual market dynamics: The decline coincided with sizeable profit-taking in the perpetual market. Open Interest (OI) fell by roughly $16.7 million over the period, indicating a meaningful reduction in outstanding MYX perpetual contracts (CoinGlass). Yet total liquidations—positions force-closed after hitting stops—were limited to about $1.02 million, implying roughly $15.68 million of positions were intentionally closed by traders (likely profit-taking) rather than being liquidated. - Funding stance: The OI–weighted funding rate stayed positive throughout the pullback, meaning a majority of open positions remained long and overall sentiment still skewed bullish. On-chain and liquidity picture - Protocol revenue and activity: On-chain activity ticked up modestly while protocol revenue rose from $5 to $18—still low but showing growth. - TVL: Total Value Locked increased by roughly $720,000 since January 1, signaling sustained liquidity commitment from investors who continue to lock tokens for rewards and longer-term exposure (DeFiLlama). Volumes and liquidity structure - Perpetual trading volume on DEXes jumped, with daily volume rising by about $66.24 million and seven-day cumulative volume reaching $1.936 billion—evidence of elevated trading interest. - Liquidation heatmap: Liquidity clusters are concentrated above the current price, creating “liquidity magnets” that could draw price upward as orders get filled. Combined with the dominance of long positions in the perpetual market, this setup supports the possibility of an upward attempt to reclaim lost ground (CoinGlass). Bottom line The sell-off appears driven largely by strategic position closures rather than forced liquidations, and several indicators—positive funding, rising TVL, heavy trading volume, and liquidity stacked above price—point to a corrective pullback with a decent probability of recovery. That said, market conditions can change quickly. Sources: CoinGlass, DeFiLlama Disclaimer: This content is informational and not investment advice. Cryptocurrency trading is high-risk—do your own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news