What Do Derivatives Market Signals Reveal About MYX's 20% Pullback Risk?

Futures open interest hits record high of $244.49 million, signaling extreme market optimism

MYX's futures market has reached an unprecedented level of activity, with open interest soaring to $244.49 million in September 2025. This remarkable figure represents the highest ever recorded for the token, reflecting extraordinary bullish sentiment among derivatives traders. The surge coincides with several key developments in the MYX ecosystem, particularly the high-profile listing of the World Liberty Financial (WLFI) token on the MYX exchange.

Market data reveals the dramatic impact of these events on MYX's performance:

The record high open interest signals extreme market optimism, but analysts remain divided on whether this enthusiasm is sustainable. With over 80% of MYX tokens locked and thin liquidity in the market, the price remains vulnerable to sharp corrections. The 58% crash following Hack VC's $2.15 million token dump demonstrates this vulnerability. Despite these concerns, MYX's $9 billion monthly derivatives volume indicates substantial speculative interest that continues to fuel price action in this volatile market.

Funding rates turn negative as long positions face liquidation pressure

In 2025, MYX Finance experienced a significant market event when funding rates turned negative, indicating substantial short-selling pressure in the derivatives markets. This phenomenon created a precarious situation for leveraged long positions, which subsequently faced severe liquidation pressure. According to market data, when MYX's price surged dramatically by 173% within 24 hours, reaching a valuation of $17 billion, it triggered a cascade of liquidation events across trading platforms.

The relationship between negative funding rates and liquidation events is clearly illustrated in the market data:

The excessive leverage employed by traders, often reaching 25x positions, resulted in approximately $43 million in losses during this period. The combination of $200 million in open interest and persistently negative funding rates in MYX futures markets exacerbated the liquidity dangers. This situation demonstrated how leveraged positions can amplify market volatility when funding rates shift dramatically, creating a feedback loop of forced liquidations that further intensifies price movements.

RSI reaches overbought levels at 98.06, indicating high risk of 20% price correction

MYX Finance's RSI has reached a critical threshold, with the 7-day RSI touching an unprecedented 98.06 while the 14-day RSI stands at 96.21. These extreme readings significantly exceed the traditional overbought threshold of 70, placing MYX in an extremely precarious position. Technical analysts generally consider RSI values above 95 as statistically unsustainable speculative territory, suggesting an imminent price correction.

The severity of this overbought condition can be understood by examining recent market data:

Historical price movements show that when MYX reached similar RSI extremes, it experienced significant corrections. On October 10, 2025, MYX plummeted from $5.112 to $0.946, representing an 81.5% drop in a single day following a period of unsustainable growth. The current market activity shows similar warning signs with disproportionate trading volume—perpetual contracts suddenly soared to $6-9 billion despite much lower actual liquidity and market cap, creating artificial demand signals.

Based on this technical analysis and previous price behavior, analysts anticipate a potential correction of approximately 20% in the near term as the market rebalances from these extreme overbought conditions.

FAQ

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Elon Musk is closely associated with Dogecoin, a meme-inspired cryptocurrency he has frequently promoted and supported on social media and in public statements.