WAL is currently around 0.0222. After one wave of bounce, it immediately started to retrace.
Just a couple of days ago it printed a historical low at 0.0201, then within two days it jumped back to 0.029—up more than 40%—and volume surged to 8x. This rebound really does have money coming in.
But here’s the issue: the money coming in is leveraged capital, not spot capital.
Open interest on the contracts has nearly tripled in a single day, and funding/fees were slammed to -1.07%, squeezing the shorts very aggressively. On the other side, however, spot saw a net outflow of more than 10 million in just three hours. Across 12 candlesticks there wasn’t a single positive one. Even the proactive sell orders are still pressing down on buys.
In plain terms, right now it’s contracts fighting, while spot is withdrawing. Leverage has pulled the price up, but the funds haven’t kept up.
At this level I won’t chase. The rebound is real, but the direction was voted into place by leverage—there hasn’t been confirmation from spot yet. Also, price is still below the medium- to long-term moving averages. If you want to get involved, either wait for spot to return, or wait for this leverage-driven washout to finish. Right now, the odds on both sides are uncomfortable. I’ll just watch first.
#wal $WAL
Just a couple of days ago it printed a historical low at 0.0201, then within two days it jumped back to 0.029—up more than 40%—and volume surged to 8x. This rebound really does have money coming in.
But here’s the issue: the money coming in is leveraged capital, not spot capital.
Open interest on the contracts has nearly tripled in a single day, and funding/fees were slammed to -1.07%, squeezing the shorts very aggressively. On the other side, however, spot saw a net outflow of more than 10 million in just three hours. Across 12 candlesticks there wasn’t a single positive one. Even the proactive sell orders are still pressing down on buys.
In plain terms, right now it’s contracts fighting, while spot is withdrawing. Leverage has pulled the price up, but the funds haven’t kept up.
At this level I won’t chase. The rebound is real, but the direction was voted into place by leverage—there hasn’t been confirmation from spot yet. Also, price is still below the medium- to long-term moving averages. If you want to get involved, either wait for spot to return, or wait for this leverage-driven washout to finish. Right now, the odds on both sides are uncomfortable. I’ll just watch first.
#wal $WAL