69% of people are still going long, but the price has already fallen 27%.
This setup is quite unusual—today VELVET dropped from a high of 0.186 to as low as 0.126, a decline of nearly 30%, yet the long position still accounts for 69%, while shorts are only 31%. Usually, when it falls this hard, longs are forced to cut losses, and the long/short ratio narrows or even flips. But that’s not happening now.
What does this imply? Most likely, a large number of long positions are trapped at higher levels and haven’t exited yet. Either they’re holding on, or they’re adding more to average down their cost.
Now let’s look at the funding rate: -0.0108%, which is negative. A negative funding rate means shorts pay money to longs. In the market structure, someone is effectively betting on a further drop—but they’re fewer in number and have a lower chance of winning, so they have to subsidize the position to keep it open.
The candlesticks are even more straightforward: three consecutive hourly candles closed bearish. Meanwhile, the recent trading volume has dwindled from 70 million down to 19 million. The price action keeps shifting lower, and there’s no clear sign of a stop to the selling yet.
So the current situation is: longs are stuck above, and the funding rate gives them a bit of compensation. But as long as the price can’t hold near the 0.126 low, once the pressure to get out and unwind positions builds, the sell orders will likely be more concentrated than people expect.
It’s not saying it must keep falling. Rather, the long/short structure itself is worth keeping an eye on.
$VELVET #多空比 #27% crash
Click the small card below to quickly view the chart👇
This setup is quite unusual—today VELVET dropped from a high of 0.186 to as low as 0.126, a decline of nearly 30%, yet the long position still accounts for 69%, while shorts are only 31%. Usually, when it falls this hard, longs are forced to cut losses, and the long/short ratio narrows or even flips. But that’s not happening now.
What does this imply? Most likely, a large number of long positions are trapped at higher levels and haven’t exited yet. Either they’re holding on, or they’re adding more to average down their cost.
Now let’s look at the funding rate: -0.0108%, which is negative. A negative funding rate means shorts pay money to longs. In the market structure, someone is effectively betting on a further drop—but they’re fewer in number and have a lower chance of winning, so they have to subsidize the position to keep it open.
The candlesticks are even more straightforward: three consecutive hourly candles closed bearish. Meanwhile, the recent trading volume has dwindled from 70 million down to 19 million. The price action keeps shifting lower, and there’s no clear sign of a stop to the selling yet.
So the current situation is: longs are stuck above, and the funding rate gives them a bit of compensation. But as long as the price can’t hold near the 0.126 low, once the pressure to get out and unwind positions builds, the sell orders will likely be more concentrated than people expect.
It’s not saying it must keep falling. Rather, the long/short structure itself is worth keeping an eye on.
$VELVET #多空比 #27% crash
Click the small card below to quickly view the chart👇
