Derivatives aren't affecting spot price directly, it is vice versa. Derivatives are following spot price, however, sometimes they may force it, curve it, or temporarily push it.

👇LET ME EXPLAIN WHY $LIGHT IS RALLYING AGAIN..🚀
YOU WOULD'NT BELIEVE.. 😇

DID YOU KNOW?
👉 When a short position closes in profit, it does act like a buy order in the market.

Even though the trader initially sold to open the position,

exiting the short always requires buying the asset back,

which introduces buying pressure.

A short position begins with selling a borrowed asset

at a higher price, which adds sell-side pressure

and pushes price downward. As price moves lower

and the trade becomes profitable, the short

is eventually closed by purchasing the same

asset at a lower level. That closing transaction

is executed as a buy order, either market or limit,

just like any other buy in the order book.

This is why profitable short closures often

contribute to upward price movement.

When many traders close shorts around the

same area, their combined buy orders can

cause a bounce or even a sharp rally.

In market structure terms, this is known as short

covering, and it frequently occurs near support

zones or after momentum indicators show exhaustion.

From a price action perspective, this explains

why strong downtrends are often followed by

fast recoveries. Once selling pressure slows,

shorts begin locking in profits, and their buy

orders shift the balance toward demand.

The key point is that opening shorts creates

selling pressure, but closing shorts—whether

in profit or loss—always creates buying pressure.
{future}(LIGHTUSDT)
In $LIGHT case, whales with heavy pockets

have now closed their shorts it seems

causing this massive upside move.

Price could potentially retrace half way back

towards $2.2 as momentum also pile up.. 🚀

What are your thoughts on this?

DYOR
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dr_mt

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