Assessing DeepBook’s 12% rally amid $23M in market activity
DEEP continues to rally, backed by buy volume. However, short positions in the market are posing a risk.
DeepBook [DEEP] gained 12% as its combined Spot and Perpetual Volume surged more than 77% to roughly $23 million.
The rise brought more traders into the market. However, CoinGlass data showed whales and retail traders leaning bullish while Smart Money took an “Extremely Bearish” position.
Why are DEEP traders divided?
CoinGlass recorded Long/Short Ratio readings of 2.12 for retail traders and 1.12 for whales. Both readings of DeepBook [DEEP] pointed to a bullish lean within those groups.
Smart Money traders, meanwhile, took the opposite side. Their “Extremely Bearish” reading raised a question about how much support DEEP’s rally had across market participants.
That disagreement matters more than the label itself. The next set of market-wide readings showed a narrower bullish edge.
What did DEEP’s Funding Rate show?
Across the tracked trading venues, longs accounted for 50.7% of volume, against 49.3% for shorts. Buyers held an edge, but only a small one.
By contrast, the Funding Rate of DeepBook [DEEP] turned negative at -0.0027%. That reading showed a bearish tilt in Perpetual pricing, despite DEEP’s price gain.
The Funding Rate had also dipped below zero on the 14th and 23rd of September before returning to positive territory. Those earlier reversals leave room for another rebound, though they do not establish that a short squeeze will follow.
For now, DEEP’s rally has buyers behind it, but conviction remains uneven. Whether the Funding Rate recovers may help show if the disagreement is fading.
Final Summary
- DeepBook rose 12% as Spot and Perpetual Volume increased, while retail traders and whales leaned bullish.
- Smart Money stayed bearish, and a negative Funding Rate complicated the case for another move higher.
