Venice Token [VVV] Dropped 13% to $15.03 at the press time.
The performance of Venice Token protocol has improved dramatically.
DeFiLlama’s data revealed record quarterly earnings of $1.1million. DeFiLlama data showed record Quarterly Earnings of $1.1 million.
Earnings growth suggests that platform and activity usage has increased in spite of recent market turmoil.
VVV still had to be priced higher despite the stronger performance. The divergence in price raised two important questions. VVV was entering a bearish stage. Who were the traders driving this decline?
Are derivatives traders pressuring VVV?
VVV’s permanent market showed clear signs of declining trader sentiment. The Funding Ratio fell to 0.0001% from 0.0141% the 28th August.
The Funding Ratio remained slightly positive. This decline is more likely to reflect a weakening of long demand than confirmation of short dominance.
CoinGlass reports that VVV’s ratio of long to short accounts fell to 0,86. If the ratio is below 1, it means that there are more short than long accounts in a market.
The combined effect of both metrics indicated a diminished derivatives bias. The price of VVV could be impacted by continued short positions.
Do spot traders buy VVV
The altcoin’s Spot Market netflow has remained in the negative during recent sessions.
Within 12 hours, around $267,000 departed centralized exchanges. Three days had passed since negative Netflows were also present.
The outflows may indicate withdrawals by holders VVV Exchanges reduce the immediate selling supply. Negative Netflows cannot, however, confirm new buying or holding for the long term.
VVV was therefore facing a split market. The derivatives market was bearish while the spot outflows indicated that supply on exchange side had tightened.
If Spot accumulation continues, VVV could attempt a near-term recovery. Venice Token has a record of earnings, but the pressure from derivatives could prevent this move.
Final summary
- Venice Token declined 13% from $16.03 to 16.03, despite record Protocol Earnings. VVV earned $1.1 million during the Quarter.
- VVV’s funding rate fell dramatically but was marginally positive. It is more likely that the declining Funding rate reflects a weaker demand for long-term investments than it confirms short-term dominance.
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Source: ambcrypto.com
