Foreign media reports that the Jito token JTO surged by as much as 14% in the past 24 hours, primarily driven by large-scale buying. However, as trading dominance shifted to retail investors, data from the spot and derivatives markets began to weaken, and short-term sentiment shifted from chasing gains to defensiveness.
Funding dominance shifts to retail investors
The article mentions that on the evening of June 5th, an indicator reflecting the difference between whale and retail investor trading rose to 0.139, showing that large funds clearly had the upper hand. The indicator subsequently declined, recently falling to approximately -0.014, indicating a rise in the influence of retail investors in the market.
This change is also reflected in the net inflow data. On June 5th, JTO still recorded a net inflow of approximately $205,000; by the next day, the net inflow had turned into a net outflow of approximately $860,000. The article argues that this indicates some funds chose to take profits after the rebound, and selling pressure began to outweigh buying pressure.
Perpetual contract sentiment weakened in tandem.
Foreign media pointed out that bearish sentiment is not limited to the spot market; similar changes are also observed in JTO perpetual contracts. At the time of writing, the funding rate had fallen to -0.0689, meaning that the number of short contracts in the market exceeds the number of long contracts.
CoinGlass data shows that JTO perpetual contract trading volume was approximately $100.45 million, with sellers dominating. If selling pressure remains high, the previous rally driven by large sums of money may face downward pressure.
Positions increased, but short positions also increased.
The article also mentioned that JTO perpetual contract open interest increased by 37% in the past 24 hours, reaching $37.06 million. An increase in open interest usually indicates more funds entering the market, but with negative funding rates, this new position is more likely to come from short sellers.
Foreign media outlets believe that the current market risk-reward ratio is biased towards the bearish side, and retail investors are more inclined to bet on a pullback. If net selling in the spot market and short positions in perpetual contracts continue to expand, JTO prices will face greater downward pressure in the short term.
