$TAO is showing a pretty interesting divergence right now. Price bounced from around $198 and has reclaimed the $202 area, currently sitting around $202.92.
What caught my attention is what’s happening in derivatives. Open Interest has dropped from around 303.5K to 300.6K, while funding has flipped negative to around -0.0011%. So we’re seeing price recover while leverage is coming out of the market.
The Top Trader Long/Short Ratio by accounts also moved down from 2.51 to 2.37, while the ratio by positions slipped from 2.52 to 2.47. Basically, the long bias is cooling down even though TAO is holding above $200.
At the same time, Binance adding TAO to Simple Earn Locked Products, with up to 2.9% APR for 90 days, is an interesting fundamental factor. It could encourage more holders to lock up their TAO instead of keeping it immediately available in the market.
So right now we have price holding up, OI coming down, funding negative and trader positioning becoming less bullish. That’s a divergence I’m definitely keeping an eye on.
TAO still looks like a weak downtrend that could be forming a bottom, but I’m not rushing anything here. The next price action should tell us a lot.
Read the market, stay patient. 🐦
What caught my attention is what’s happening in derivatives. Open Interest has dropped from around 303.5K to 300.6K, while funding has flipped negative to around -0.0011%. So we’re seeing price recover while leverage is coming out of the market.
The Top Trader Long/Short Ratio by accounts also moved down from 2.51 to 2.37, while the ratio by positions slipped from 2.52 to 2.47. Basically, the long bias is cooling down even though TAO is holding above $200.
At the same time, Binance adding TAO to Simple Earn Locked Products, with up to 2.9% APR for 90 days, is an interesting fundamental factor. It could encourage more holders to lock up their TAO instead of keeping it immediately available in the market.
So right now we have price holding up, OI coming down, funding negative and trader positioning becoming less bullish. That’s a divergence I’m definitely keeping an eye on.
TAO still looks like a weak downtrend that could be forming a bottom, but I’m not rushing anything here. The next price action should tell us a lot.
Read the market, stay patient. 🐦