SOON [SOON] has remained on the bearish side of the market as capital continues to shrink in the markets. In the last 24 hours, the asset recorded an outflow of 15% in one day, indicating that bears are in full control of the market.
The current outlook is bearish, but only paints part of the picture as the value is up 35% over the past seven days – a move that could imply the market is in a corrective phase.
AMBCrypto gathered market insights to see which side of the market dominates.
SOON’s capital base is declining across all segments
A massive capital squeeze in the perpetual and spot markets for SOON has largely led to the outflows seen over the past day.
The declining Open Interest in the perpetual market provided one of the clearest signals. According to the analysis, CoinGlass reported a capital outflow of $58 million in the perpetual market over the past day, with net outflows showing a net outflow of $1.85 million within the same period.
The spot market shed a large amount of capital over the same window, where the net flow recorded approximately $306,000 in sales. This sales pattern has proven to be a strong theme in the perpetual market thus far.
Data shows that the spot market has seen heavier selling over the past ten days as investors take more profits as the asset rises in price.
A shrinking capital base in the spot and perpetual markets simply puts SOON at risk of a long-term decline unless new capital comes in to fuel demand.
Binance traders continue to stack the long side
The market woes haven’t stopped Binance traders from accumulating more buying volume on the perpetual market.
CoinGlass reported the Long/Short Ratio, which tracks whether perpetual market volume leans toward longs or shorts, and it confirmed that top Binance traders have more buying volume across both accounts and positions.
The Long/Short ratio is above 1 when buying volume is high, and short volume dominates when the value falls below 1.
Within Binance, both top and retail traders are currently positioning themselves long, with Binance controlling the most volume and Open Interest with $50.83 million and $10.02 million respectively.
However, the overall Long/Short ratio in the market has shifted further to the bearish side, with the value falling to 0.98, which is a slight selling volume advantage that short traders have held over the longs in the last 24 hours.
The market still tends to move to the bullish side regardless of the current outlook.
The financing rate is still in favor of the bulls
The Funding Rate, which measures whether capital in the perpetual market is largely long or short, shows that the former is in control.
At around 0.0050%, this implies that the majority of the $40.16 million in perpetual contracts in the market is tilted toward the longs.
This situation usually arises when, despite the market’s downside, investors expect further upside potential in the near-to-short term, and given the rising buying volume of major exchanges like Binance, there is a good chance that a flip will continue.
Final summary
- Capital is shrinking rapidly from SOON, with a 15% outflow in one day and $58 million pulled from the perpetual market.
- The bigger picture isn’t all bearish, as SOON is still up 35% this week and Binance’s top traders are leaning long.
Credit : ambcrypto.com
