Journalist
Posted:
- After weeks of successive market gains, Sonic began to decline while the sellers unload their assets.
- Key measures show a liquidity flow of the market, because more and more sellers dominate.
Sonic (s) (previous FTM) has been on a bullish path in recent weeks, recording a series of gains. In the last month, he joined 31.11% and added 21.75% last week.
But, at the time of the editorial staff, Sonic fell 17.22% in the last 24 hours. This drop was due to an increase in liquidity outputs and an increase in the sales pressure of derivative market merchants.
Key measures indicate faulty performance
There has been a change in the derivative market, because key measures are increasingly indicating a lower perspective for the assets in the coming days.
The open interest (OI), which determines the amount of unstable derivative contracts, has decreased in particular. He dropped from 19.44% to $ 114.13 million. Such a drop suggests contract closures on the market.
The lowering feeling of this drop in the OI is confirmed by an increase in volume. It increased by 49.77% to reach $ 795.48 million on the larger market.
This downward trend is also supported by liquidation data, which recorded losses for buyers and sellers during a given period.
The segment with the highest losses indicates that the market moves in the opposite direction.
At the time of writing this document, more than 1.4 million dollars were liquidated on the market. Long posts lost $ 1.32 million, while uncovered contracts have lost only $ 81.05,000.
Source: Coringlass
With long positions that undergo the most losses, this suggests that the market tends to decrease and will probably continue on this path until key measures on the market change.
Liquidity outlet disconnect
Liquidity has come out of the sound market. Total locked value (TVL), which records the amount of assets deposited in various protocols in the ecosystem, has gradually decreased.
At the time of writing the editorial staff, the TVL had gone from a summit of $ 736.04 million on February 24, at a current level of $ 694.4 million.
In other words, a total of $ 41.44 million was withdrawn from the market. If the sales pressure continues to grow, the decline should intensify.
Source: Defillama
A wider perspective on the TVL graphic suggests that this could be a simple corrective market phase before a potential rebound, as we see on several occasions.
However, the extent of this corrective phase cannot be determined, which means that it could be the most steep fall to date.
The confidence of merchants decreases
The confidence of long traders on the market has weakened as the funding rate becomes negative. This suggests that short -term traders acquire domination.
With a reading of -0.0071, the market could continue to drop. More short traders pay a bonus to maintain the disparity of prices between the spot and derivative markets.
Finally, the feeling of the market indicates that Sonic is in its lowest state and has a high probability of drop in additional prices.
