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IP’s 10% Surge: A Liquidity Love Story or a Bearish Betrayal?

BBG News
  • IP’s meteoric rise over the past 24 hours, fueled by a liquidity influx from on-chain investors, has left the market in a tizzy.
  • A band of spot and derivative traders, however, is not amused and is plotting a counterattack, aiming to force a sell-off.

Story [IP] has soared by a modest 10% in recent times, buoyed by a market momentum that would make a bull blush, with volume skyrocketing 286.56% to a staggering $50.3 million. 📈

Capital continues to pour in, pushing IP’s Total Value Locked (TVL) to unprecedented heights. This liquidity bonanza has been a nightmare for short traders, who are now nursing substantial losses, while derivative traders remain steadfast in their bearish bets. 🐻

Will the bears capitulate, or will the bulls back down? AMBCrypto delves into the market’s murky waters to find out. 🌊

Liquidity Surges Among On-Chain Investors

IP’s recent rally is a testament to the significant increase in Total Value Locked (TVL) across its protocols, a development that has left market analysts both intrigued and bewildered.

According to DeFiLlama, IP’s TVL has reached a new zenith of $25.33 million, a far cry from the dismal $10.66 million it recorded between May 22 and June 14. 📊

This sustained surge suggests a growing long-term investor interest, with some derivative traders still betting on a pullback, while others are increasingly bullish. 📈🐻

Derivative Market Shows Rising Buy Pressure

At the time of writing, Coinalyze data reveals that the Long-to-Short Ratio in the derivatives market has tipped in favor of the bulls over the past 24 hours.

The ratio across all exchanges indicates that 54.31% of volume came from long positions, while short positions accounted for 45.69%, reflecting a ratio of 1.19. 📊

This buying frenzy coincided with a major liquidation event that seemed to defy the IP rally. Within this period, traders who bet against IP lost a whopping $189,000, while those who went long lost a mere $29,300.

In other words, for every $1 lost by long positions, $6.49 was lost by shorts—a significant imbalance that has tipped the scales in favor of the bulls. 📈

However, this dynamic appears to be shifting. A closer look at lower timeframes reveals that sellers are starting to close the gap.

In the last hour, for instance, the long volume dropped to 51.86%, while short volume rose to 48.14%—a subtle but telling sign of a gradual resurgence of seller dominance. 🐻

Sellers Push to Regain Control of IP

Sellers are becoming more active, not only in derivatives but also in spot markets, much to the chagrin of the bulls.

On the derivatives front, Coinalyze shows that the Aggregated Funding Rate has taken a sharp nosedive, hitting -0.2107, its lowest level since June 22.

The Aggregated Funding Rate is a recurring fee between long and short positions in perpetual contracts, designed to keep prices in line with spot values across exchanges. 📊

A significantly negative rate means short traders are now paying fees, a clear indication that market momentum is shifting in their favor. 🐻

Adding to this bearish pressure is the Spot Exchange Netflow, which has seen more inflows than outflows, suggesting that more IP tokens are being moved to exchanges for potential selling. 📉

Notably, netflow on CoinGlass reached $1.98 million, the highest profit-taking point yet. Over the past two days, total sell-offs have amounted to $3.42 million.

This ongoing sell pressure casts a shadow over IP’s ability to sustain its rally, leaving the market in a state of suspense. 🌊

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2025-07-08 06:21

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