KITEUSDT is painting a picture full of paradoxes, a fake excitement is hiding deep cracks below, the crowd is still intoxicated with the illusion of rising prices while warning signals are clearly ringing, the current trading price is around 0.08858 USD, with a slight recovery from the bottom of 0.077 USD, leading many to mistakenly believe in a sustainable upward trend, but in reality, this is just preparation for another massacre, a graveyard of overly confident Long positions.
Looking deeper into the indicators, the underlying sell-off pressure is becoming increasingly heavy, impossible to hide. The Cumulative Volume Delta (CVD) of Futures, a sophisticated measure of actual buying and selling pressure, has been continuously plummeting, from around -16.445 million USD down to -16.471 million USD and continues to drop further, indicating a massive net selling flow quietly exiting the derivatives market. This is not a typical correction, but rather the exhaustion of the Long side, being forced to sell little by little. At the same time, the Aggregated Spot Cumulative Volume Delta is also not faring better; in fact, it is worse, as this indicator also maintains a strong downward trend, showing that selling flow in the spot market is also overwhelmingly dominant, dropping from around -20.688 million USD to -20.604 million USD, confirming that even traditional investors are losing confidence and are ready to exit.
However, the most alarming issue lies in the Funding Rate. With a rate of 0.0165% or even 0.0195% according to the overview, this positive figure indicates that the Long side is paying a significant fee to the Short side to maintain their positions, which is a clear sign of extreme FOMO and the overload of Long positions opened with high leverage. The market is creating a perfect 'bait', encouraging retail players to jump into Long in hopes of prices continuing to rise, but this very funding fee is eroding their profits, and more importantly, it is providing a stable source of income for Market Makers, who are waiting for the right moment to act.
Open Interest, or total open contract volume, has surged alarmingly, from below 220 million USD to 235,921 million USD. The synchronized increase of Open Interest and positive Funding Rate is a classic formula for a brutal Long Squeeze. Market Makers and whales are seeing a massive liquidity pool waiting to be 'harvested.' Every additional Long position opened is a bullet loaded into the gun of market controllers, and they will not hesitate to pull the trigger.
The situation becomes clearer when looking at the Aggregated Futures Bid & Ask Delta. With a deep negative delta of -785.343 thousand USD, and a series of prominent red columns outshining the green columns, it shows that active sell-off pressure is very strong. Sell orders are being matched directly at the bid price, without waiting, demonstrating the impatience of sellers and their dominance in pushing prices down. This is another confirmation of the underlying bearish trend, despite the weak recovery efforts of KITE's price.
KITE, in this context, is just a pawn in the larger game of the derivatives market, with every price movement influenced by the complex interactions between supply and demand, leverage, and crowd psychology. This is a classic example of systemic risk when an asset is overly dominated by derivatives. Just a small push, whether it be an Oracle error providing incorrect price data, a network congestion preventing Stop Loss orders from being executed in time, or simply a coordinated sell-off by big players, is enough to trigger a domino liquidation chain, sending KITE's price plunging into the abyss, sweeping away all Long positions that are dreaming of quick wealth. Exchanges, acting as intermediaries, often benefit from such volatility, and their mechanisms are designed to maximize this imbalance.
The bloody lesson is always present; the market never forgives subjectivity or ignorance. The dry numbers on the charts are not random; they are warning bells for what is about to happen and are tombstones for inexperienced investors. Three trees together make a tall mountain, but three bad indicators together become a deep pit where the greedy will be buried.
This is not investment advice. Please do your own research and make your own investment decisions.
