Analysts have warned that MYX Finance (MYX) may be repeating the trajectory of Mantra (OM), which spiked earlier this year before collapsing more than 90% within hours. The concern comes as MYX surged 270% in a single day and more than 1,200% over the week, briefly lifting its market capitalization above $3.3 billion.
According to TradingView data, MYX traded between $11.71 and $18.64 during its latest daily session and closed near $18.50. This marked a massive departure from its levels earlier in the week, when the token traded below $4.
$59M MYX Token Unlock Raises Insider Dump Concerns
The rally coincided with the unlocking of 39.36 million MYX tokens—about 3.94% of total supply—worth nearly $59.4 million. Analysts argue the timing gave early holders the chance to sell into surging demand, mirroring the same supply shock that worsened Mantra’s collapse. Token unlocks add new coins into circulation, often creating pressure on price once speculative demand slows.
Derivatives trading magnified the rally. MYX futures volumes reached as high as $9 billion in a single day, while open interest surged to $244 million from $95 million only days earlier.
Liquidation data shows how the move squeezed traders. In the past 24 hours, more than $45.68 million in positions were liquidated, including $33.04 million in shorts and $12.64 million in longs. Analysts say this confirms that much of the rally was fueled by a short squeeze, as bearish traders were forced to buy back into the market at higher prices.
Funding rates flipped violently—from +80% in favor of shorts to –31% in favor of longs—showing extreme instability in positioning. Analysts caution such swings signal a market driven by leverage rather than steady adoption.
Technical Signals Flash Warning
The technical backdrop reinforces concerns. MYX’s Relative Strength Index (RSI) reached 97.18, an extreme overbought level. Readings above 70 typically warn of stretched conditions, and levels above 90 are rarely sustained without a correction.
Moving averages also show how far the token has diverged from its trend. MYX price closed near $18.50 while its 20-day EMA sat at $4.13, and its 200-day EMA at just $1.29. Analysts argue this gap shows how detached the MYX token price is from historical support.
At the same time, the project’s total value locked (TVL) stood near $32 million, far below its multibillion-dollar market cap. The disconnect between on-chain fundamentals and market valuation adds to the caution.
The rally was partly fueled by external events. The listing of World Liberty Financial (WLFI) on the MYX platform increased trading volume. Anticipation for MYX’s version-2 upgrade—promising zero-slippage trading and cross-chain support—added hype. New listings on exchanges such as Gate also expanded access.
But analysts argue these developments cannot explain gains exceeding 1,200% in a week. Instead, they see a rally built on speculative leverage and opportunistic token sales, the same combination that brought Mantra’s rapid downfall.
