MYX falls 33% as $74M outflow shakes market – What’s next?

Key Takeaways

MYX records a major liquidity outflow from the derivatives market, with $74 million exiting. Mixed reaction from market investors gives no clear direction on price next move.

MYX Finance [MYX] in the past day witnessed its steepest outflow, marking a 33% decline, at press time.

Despite this decline, indicators show a growing bullish alignment in the market, adding to the possibility of a rally. AMBCrypto examines how MYX’s next movement could develop.

Liquidity outflow forces MYX into a corner

There has been a massive liquidity outflow from MYX in the derivatives market, as both long and short investors closed their positions.

The outflow resulted in $74 million worth of positions being closed, covering both liquidated and non-liquidated positions.

At press time, Open Interest (OI) on CoinGlass sat at $311 million in the market.

Source: CoinGlass

In fact, investors holding on to long positions and backing the bullish trend are facing significant losses, according to recent Liquidation Insight data.

At the time of writing, total long liquidations, representing bullish traders, had reached $6.41 million. Meanwhile, short liquidations were also on the rise, climbing to $4.21 million.

This simultaneous increase in both long and short liquidations suggests a potential shift in market structure, with bullish momentum possibly gaining strength as trading continues to unfold.