$NIGHT experienced a sharp downward correction with a 50% drop in trading volume and a 12% drop in open interest, but beneath the bearish surface, a massive accumulation wave is forming.
🔹 Trader are reducing risk. OI fell $12.7 million (12%) to around $106 million, and negative funding rates suggest short selling is temporarily dominating the perpetual contract market.
🔸 While leverage is being withdrawn, spot investors are pouring in buys as prices fall. $301 million has been bought in the past 5 days. The A/D line remain strongly positive, signaling a tightening of supply.
🔹 The liquidation heat map shows cluster of liquidity above the current price, acting like magnets pulling prices up. With limited liquidity, the most likely trend is a sharp price increase.
When the derivatives market drops $12 million but the spot market absorbs $301 million in 5 days, are you following fearful leveraged trader or confident whales building massive position?
Trading Insight_research and information are for informational purposes only and are not investment advice. Please read carefully before making any decisions.
