ETHGas [GWEI] The GWEI token has risen to the top of all the other crypto recoveries over the last 24 hour. GWEI led the market with a 18% gain, while total cryptomarket grew by 1.72%.
A number of factors have contributed to the rise, including the influx in capital from U.S. investors actively involved with the asset.
U.S. volume is leading the GWEI rallies
Investors from the United States have played a major role in this move and are responsible for a significant portion of recent token performance. CoinMarketCap data indicates that GWEI’s daily volume has risen to $2.09million. This is the highest level for this period.
This figure is higher than other exchanges, and represents roughly 12.59% of total token volume. The U.S. desks are at the forefront of this gain.
Concentration shows the extent to which GWEI’s current price movement is influenced by U.S. activity, which will determine where tokens are headed next.
The total volume of trading across all venues reached a record high at $16.58 millions by the time this article was published.
A rising price and volume have historically been signs of bullish market conditions.
This type of setup tends to be stable in the short-term, but a different set of factors will determine the price over time.
The futures market and the spot market are at odds with each other
GWEI’s permanent futures market is a cautionary tale, as a significant portion of the capital has been channeled towards the sell side. This leaves the rally open to risk.
The open-interest-weighted funding rate, which measures whether positioning tilts bullish or bearish, has turned negative at -0.38%, reinforcing the pull toward shorts.
The opposite happened on the spot markets, as sell pressure dropped from 16,48 million dollars at time of press to 805 100. This thinning of sell pressure indicates that more investors are choosing to keep the asset.
Netflow on the spot market supports this, with only a slight difference of $26,370. That means that buyers outnumbered sellers by a mere 26% over the previous day.
If the funding is negative, it could be the beginning of a squeeze. A group of sellers may drive the price down to cause stop loss before forcing an even more dramatic move upward.
Above the price, liquidity clusters can be seen
GWEI’s graph leaves some room for a fall. However, if the order volume is thin below current prices then it would be difficult to go much lower.
Order depth is stacked higher in the heat map for liquidation than the price. These levels tend to attract price over time.
Momentum is still in favour of the upward trend, although the order resting beneath the price keeps some downside risk.
Final summary
- GWEI gained 18% during the last 24 hour as U.S. Trading Desks drove the daily volume up to $2,09 million or approximately 12.59% the token’s total turnover.
- The funding rate of -0.38% on perpetual futures suggests that the movement could have been an early short squeeze, rather than a sustained move.
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Source: ambcrypto.com
