MYX Financiers [MYX] The price of the stock has dropped more than 12 percent in the last 24 hours while volume trading is up 45%.
Volume was still relatively low, around 25 million dollars. Liquidity also continued to weaken, with the liquidity-to-market-cap ratio sitting at 0.96%, according to CoinMarketCap. The decline in liquidity was brought about by increased selling pressure on both the Spot and Derivatives markets.
Why has MYX faced heavy sales?
The decline of MYX this month coincided with large token transfers associated with a multisignature wallet.
As per Arkham dataFrom a Gnosis Secure Proxy wallet, Bitget received more than 17,96,000,000 MYX worth $2.46 Million. One wallet moved 50 MYX tokens worth $6.41 Million.
In addition, Bitget moved 12,000,000 MYX tokens valued at over $1.5million from its cold wallet into a hot wallet. Although these transfers don’t confirm a selling, they usually increase the probability of tokens being circulated.
Over 80 MYX Tokens valued at $10.4 Million were available.
Markets were unable to absorb this supply and prices increased.
Over the past twelve hours, liquidations of long positions have increased. Over $230,000 worth of long positions have been liquidated compared with just $7,400 worth of shorts. This suggests that leveraged bulls got caught in the wrong direction.
In addition, the Open Interest fell sharply as well from more than $3 million dollars to approximately $2 million. Holder revenue has also fallen to zero, indicating a decline in protocol activity.
Can MYX avoid a deeper decline?
MYX has broken below the support triangle at $0.1876.
On the daily chart, it was clear that this token has been trading within a similar structure since March. The recent decline in value is a result of months-long consolidation.
Furthermore, the Cumulative volume Delta (CVD), highlighted ongoing selling pressure in Binance’s Derivatives Market. Approximately 26,64,000,000 MYX contracts had been sold short at the time of press. It was clear that traders still remained bearish despite the market increasing by 0.49% in the last day.
This ratio improved, however. It went from 0.48 up to 1.83. The shift in the ADR suggested that selling pressure was easing.
It is possible that the break-up could be a fakeout if the buyers are able to reclaim their $0.1876, and then push up above the triangle’s resistance. MYX could remain under pressure if the bearish sentiment persists.
Final Summary
- MYX declined over 12 % after fears that additional supply would enter the market were heightened by large token transfers.
- If the amount recovered is greater than $0.1876, it could invalidate a breakdown.
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Source: ambcrypto.com
