Key takeout
Why did Bless drop 44% despite bullish investor sentiment?
The major liquidity outflows in the derivatives market, coupled with closure agreements and low overall trading volume, have driven a sharp decline.
Can Bless recover from this drop?
The short-term outlook is bearish, but potential liquidation clusters and strong Binance purchase pressure suggest that long-term benefits are still possible.
blessing [BLESS] The day was held with a sudden decline, and threw away 44% of its value during pressing. This is one of the most sudden losses on the market.
Even if a few investors remained bullish, liquidity spills were a shock. Ambcrypto analysis examined the factors driving the potential price trajectory of decline and blessing.
I oppose the bull
The decline in blessing prices is in contrast to bullish sentiment in the broader market. In fact, 82% of investors remain bullish on blessings, according to CoinmarketCap data.
Typically, bullish investors’ concentrations usually reflect strong long-term convictions, suggesting that they plan to hold or increase their position. But that was not the case for blessings.
Interestingly Ambcrypto discovered that Binance Traders is one of the most bullish and defies wider bearish feelings.
Source: Coinglass
At the time of press, the long/short ratio of Binance has steadily risen to 1.98 over the past day. One measurement above shows more purchases than sale.
This optimism could be driven in part by the recent launch of Benance Aloha of Blessing, allowing for early positioning on assets.
What caused a massive price drop?
Ambcrypto tracked the decline to major liquidity spills from the derivatives market.
Despite this purchasing pressure from Binance Traders, overall market volume remains low. In fact, at the time of writing, the broader long-term ratio was 0.94.
Source: Coinglass
According to the data, the drop coincides with a sharp decline in open interest-weighted funding rates, sliding from 0.0025% to 0.0014%.
This sudden decline in metric suggests that the majority of derived contracts for blessing have been closed. The downward trend indicates the possibility of further closure.
These factors contributed to a massive spill of blessings seen in past days. If the trend continues, assets can see further price drops.
The liquidation map shows clusters with increased prices
The liquidation map highlights potential price ranges for blessings.
Three important clusters for short liquidation are shown.
Shorts dominate and prices move towards these clusters can cause rallying and increase blessings on the charts. Conversely, if long is controlled, the asset can extend its upward execution towards its previous peak.
Source: Coinglass
For now, the bearish outlook for blessings looks short-term, but its long-term trajectory remains leaning upside down.