$BANK #LorenzoProtocol $BANK @Lorenzo Protocol
The price of BANK, anchored around 0.03749 USD, is telling a story that many do not want to hear. Weak recoveries, lonely green candles appearing on the chart, easily mislead the crowd into thinking there is an opportunity for a "bottom fishing" or a spectacular reversal. But that is just a thin layer of paint, concealing a pre-set psychological trap. The market has no place for blind faith, and beneath that peaceful facade, a fierce liquidity battle is raging, eroding the assets of the unsuspecting.
Price data does not lie about this brutal trend. The drop of -10.97% in 7 days, -23.63% in 30 days, and -58.47% in 90 days clearly indicates a harsh reality. The trading volume spikes, especially when the price of BANK drops sharply, are not a sign of demand but rather an overwhelming selling pressure, with Volume SMA 9 frequently exceeding 52.228K. This is evidence of continuously activated liquidation orders, turning support levels into graveyards for Long positions. This intentional "price crushing" is draining the strength of the buyers.
The Cumulative Volume Delta (CVD) of futures contracts further reinforces this observation. With deep negative levels from -49.935M to -50.291M, CVD Futures shows the absolute dominance of the sellers. This is not a spontaneous panic from retail investors, but large-scale selling actions from prominent players. They use huge sell orders, creating a domino effect, continuously pushing prices lower, paving the way for new liquidations, thus profiting from the crowd's gullibility.
The spot market is also not outside the influence of this pressure. Aggregated Spot CVD continues to plunge into negative territory, from -8.453M to -8.643M, indicating that selling pressure is not only concentrated in derivatives but also spreading throughout the market. This confirms a systemic downtrend, where confidence in the short-term growth potential of BANK is almost non-existent. The consensus to sell on both fronts is a strong warning signal about the profound lack of faith in the near future of this project.
Ironically, the Funding Rate remains positive, around 0.0046. A positive Funding Rate in the context of BANK's continuously declining price indicates that a significant number of Long positions are still being maintained, and there may even be new positions being opened. Long players are paying fees to the Short side, providing "free" liquidity to Market Makers so they can continue to maintain selling pressure. This is the classic trap: creating a feeling that "the price is low enough" to attract buyers, and then slowly tightening the liquidation noose.
Open Interest (OI) fluctuates around 108.7M-108.8M, but when looking at its fluctuations, we see significant drops coincide with sharp price declines. This is clear evidence of large-scale liquidations. When the price of BANK drops, Long positions are forcibly closed, leading to a decline in OI. Afterward, OI may recover slightly as some investors attempt to catch the bottom, only to become the next victims in the endless liquidation chain, providing more fuel for the Market Maker.
The Aggregated Futures Bid & Ask Delta index is the final evidence showing the brutality of the market. Huge red columns, especially when prices drop sharply, with delta sometimes reaching 53.43K, indicate that the sellers are extremely aggressive. They use large market sell orders to crush any buying attempts. These sudden "dumps" are not random; they are a carefully calculated strategy to maximize liquidations, create panic, and break key support levels, turning them into resistance.
BANK, in this harsh context, is just a prime example of an asset trapped in the whirlpool of the derivatives market rife with manipulation. What we are witnessing is not merely a "Oracle error", but a ruthless exploitation of the crowd's psychological flaws and the fundamentally illiquid market structure. Market makers are turning successful trading rules into tools to increase their assets, pushing prices down to trigger stop-loss orders. The systemic risk here is the erosion of trust in a fair playing field.
The trade-off between potential profits and liquidation risk has never been clearer and more ruthless. The cold numbers on the chart are not dry data; they are the cries of investors who have lost everything due to a lack of knowledge, vigilance, and being driven by greed. The bloody lesson is always present: "Keep your word more than gold" – stick to the principle of capital preservation and understand the nature of the market, rather than chasing after false signals. Do not let yourself become liquidity for the Market Maker's game, a pawn on their chessboard.
This is not investment advice. Please do your own research and make your own investment decisions.
