$WAL — shorts are practically handing it to us this time: the higher it goes, the more they add to their positions
$WAL has been interesting over the past hour: it sat around $0.06 for five hours, then the 5:30 hourly candle surged 10% and broke through the range. The area around $0.065 is now the new battleground.
But what the other side is doing is more interesting than the price. Derivatives data shows the funding rate has plunged to -0.24% per 8 hours — shorts are paying to stay in. The long-to-short account ratio has fallen to 0.56, with nearly two-thirds of accounts short. The higher the price climbs, the more crowded the short side gets. That’s a classic short-squeeze setup: longs don’t even need to push very hard; shorts closing their positions can drive the price higher on their own.
Of course, it’s worth being clear about the risks: open interest is only a little over $3 million, while 24-hour contract volume is over $100 million — it’s all fast-moving day traders passing positions back and forth. This kind of market can rise fast, but it can crash just as quickly. The old Sui news from the 13th has long since been priced in; this move is being driven purely by technicals and sentiment.
As for trading: the top of the $0.06 range has now turned into support. If the hourly candle closes back below it, the short-squeeze thesis no longer holds. If it holds, the next stop is around $0.078 (about 20% above the current level).
$WAL has been interesting over the past hour: it sat around $0.06 for five hours, then the 5:30 hourly candle surged 10% and broke through the range. The area around $0.065 is now the new battleground.
But what the other side is doing is more interesting than the price. Derivatives data shows the funding rate has plunged to -0.24% per 8 hours — shorts are paying to stay in. The long-to-short account ratio has fallen to 0.56, with nearly two-thirds of accounts short. The higher the price climbs, the more crowded the short side gets. That’s a classic short-squeeze setup: longs don’t even need to push very hard; shorts closing their positions can drive the price higher on their own.
Of course, it’s worth being clear about the risks: open interest is only a little over $3 million, while 24-hour contract volume is over $100 million — it’s all fast-moving day traders passing positions back and forth. This kind of market can rise fast, but it can crash just as quickly. The old Sui news from the 13th has long since been priced in; this move is being driven purely by technicals and sentiment.
As for trading: the top of the $0.06 range has now turned into support. If the hourly candle closes back below it, the short-squeeze thesis no longer holds. If it holds, the next stop is around $0.078 (about 20% above the current level).