Conflux token CFX has fallen more than 11% in the past 24 hours, but derivatives and spot data do not entirely point to a bearish trend. Perpetual contract funding rates remain positive, top Binance traders continue to favor long positions, and there has been sustained net buying in the spot market, indicating a divergence between price action and some fund activity.
Open interest declined
According to CoinGlass data, approximately $4.5 million in open interest flowed out of the market during this downturn, reflecting weakening sentiment and the liquidation or voluntary exit of some positions.
However, the funding rate for perpetual contracts, which measures the balance of power between bulls and bears, did not turn negative. At the time the report was published, the CFX funding rate had risen to 0.0058%, meaning that bulls still held a higher position, and the dominant side continued to pay funding fees.
Binance has a large number of top-tier accounts.
Binance data shows that top traders, based on position size and account size, are still maintaining a bullish stance on CFX.
- Based on open interest, the long-short ratio rose to 2.21.
- Based on account size, the long/short ratio is 1.23.
- Binance's overall long/short ratio is only 0.94.
This means that the current bullish signals mainly come from a group of top accounts, while the broader market of traders has not simultaneously turned bullish, and overall positions remain cautious.
There was still net buying in the spot market.
In addition to the derivatives market, there has also been sustained buying activity in the spot market. Since May 17, spot traders have cumulatively purchased approximately $229,000 worth of CFX.
The week prior, CFX saw a net inflow of approximately $11 million into its spot market. Two consecutive weeks of net buying indicate that some funds are still being absorbed within the current price range.
However, the presence of spot buying and large long positions does not change the fact that the CFX has already retreated in the short term. The more important question going forward is whether these localized buying forces can spread to a wider range of market participants.
