The cryptocurrency DeepBook [DEEP] increased its value by 12% amid a sharp rise in activity: the total volume of spot and perpetual contracts grew by more than 77%, reaching approximately $23 million. This sharp increase led to a rise in the number of traders on the platform. However, data from CoinGlass showed that large investors and retail traders turned to bullish positions, while Smart Money traders remained in an 'extremely bearish' mood. According to CoinGlass, the ratio of long to short positions among retail traders was 2.12, while among large players it was 1.12. Both indicators suggest a bullish sentiment in these groups. In contrast, Smart Money traders took the opposite stance with an 'extremely bearish' reading, raising doubts about the broad support for the DEEP rally.
The following market metrics indicate a narrower bullish momentum. According to data from trading platforms, long positions accounted for 50.7% of the total volume, compared to 49.3% for short positions. Thus, buyers maintained a slight edge. At the same time, the funding rate for DeepBook [DEEP] turned negative at -0.0027%. This figure indicates a bearish tilt in perpetual contracts despite the price increase of DEEP.
It is noteworthy that the funding rate also dipped below zero on September 14 and 23 before returning to positive territory. These previous reversals give hope for a potential recovery, although they do not guarantee that a short squeeze will occur. Currently, the DEEP rally is supported by buyers, but confidence remains uneven. A recovery in the funding rate could indicate whether this disagreement is weakening.
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