ATUSDT is in a challenging market phase, where on-chain signals paint a complex picture of contention. On one hand, strong selling pressure is pushing prices down to significant lows, as reflected in the volume indicators. On the other hand, an interesting phenomenon emerges: the Funding Rate remains positive, indicating that a segment of investors is still holding onto their Long positions. This is the core contradiction, creating a trading environment not for the masses, but suitable for investors with a specific style, ready to exploit volatility and potential reversal points.
Currently, ATUSDT is trading around 0.08639 USD, a significant adjustment after a previous growth streak. Broadly speaking, the price has gone through a deep decline, with adjustments of 9.55% over the day, 73.2% over 30 days, and up to 76.98% since the beginning of the year. Although these numbers indicate a strong revaluation of the market, they also open up a view of discounted price zones where long-term investors or accumulation strategists may start considering. The average trading volume (SMA 9) is at 435.62K and the total daily volume is 9.71M, suggesting the market is still active, but there hasn't been a robust buying force sufficient to reverse the current trend. This hints at a phase where trades are primarily exploratory or distributional rather than a panic "run for the exits," keeping the market structure relatively orderly and laying the groundwork for strategic decisions.
To better understand market pressure, we need to delve into volume data. The Cumulative Volume Delta (CVD) for both the Futures and Spot markets is showing a distinct downtrend. CVD is an important indicator that reflects actual buying or selling pressure by accumulating the volume of buy and sell orders matched immediately. CVD Futures is at -78.825M, while CVD Spot has decreased to -832.576M. This continuous decline reflects persistent selling pressure from both sides, meaning the number of active sell orders exceeds that of active buy orders. Similarly, the Aggregated Futures Bid & Ask Delta data also reinforces this assessment as it continuously displays red bars, indicating that the number of market sell orders is dominating the market buy orders, currently at -20.091K. These indicators provide a very clear picture of short-term market sentiment: supply pressure is dominating. For trend-following traders, this may confirm a short-term momentum strategy, but for those seeking reversal points, it is a signal to closely monitor signs of selling exhaustion. The transparency of this data, though negative, is an asset that helps investors make decisions based on reality rather than emotions, creating a solid foundation for risk management and identifying potential price zones.
This is where things get interesting. While prices are undergoing a deep correction and clear selling pressure, Open Interest (OI) – the total value of open derivative contracts in the market – remains relatively stable around 52.626M. OI is a measure of the amount of new money entering or leaving the derivatives market. This contrasts with a typical scenario of widespread liquidation, where OI would sharply decline as Long positions are forcibly closed. The stability of OI may suggest that a significant number of positions are being held, possibly persistent Long positions or newly opened Short positions to balance out, indicating an ongoing struggle between buyers and sellers.
The most significant highlight is that the Funding Rate (the funding fee rate) is at a positive 0.0052. The Funding Rate is a periodic fee that one side of a derivative contract pays to the other to keep the derivative price close to the underlying asset price. When the Funding Rate is positive, it means that Long position holders are paying fees to Short position holders. This is extremely unusual in the context of a deep price drop and significant selling pressure. It indicates that there is still a considerable number of traders holding Long positions and willing to pay fees to maintain their belief in a recovery. This contradiction creates a potential "hot spot." On one hand, it could signal a "liquidity trap" if these persistent Long holders ultimately face liquidation, driving prices lower. On the other hand, this persistence could also form the basis for a strong Short Squeeze if any positive news emerges or an unexpected buying surge occurs. Short position holders, even when profitable, also incur Funding Rate costs, creating a certain pressure for them to close their positions. Trading styles that monitor for reversals, particularly in Short Squeeze scenarios, will be particularly interested in this indicator as an early signal for market momentum changes.
Summarizing the on-chain indicators, ATUSDT is currently in a phase of distinct market differentiation, not simply a one-way downtrend. Strong selling pressure from both the spot and futures markets (as reflected in CVD and Bid/Ask Delta) has pushed prices down to more attractive valuation levels. However, the consistently positive Funding Rate along with relatively stable Open Interest indicates an underlying belief or surprising persistence from Long position holders, creating a potential counterweight and signaling the possibility of unexpected volatility.
So, which investment style does ATUSDT fit into at the moment?
Value Investors with a long-term vision and high risk tolerance: With a significantly adjusted price, ATUSDT could become an asset to gradually accumulate if you believe in the project's fundamentals and have the patience to wait for a long recovery cycle. This is not an investment for "swing trading" but a strategy of building positions step by step, taking advantage of discounted price zones to optimize future profit potential.
Contrarian Traders and Short Squeeze hunters: These individuals will be particularly interested in the positive Funding Rate. They will look for signs of selling exhaustion or a price zone where Long liquidation pressure peaks, betting on a strong rebound when the market turns, especially when Short positions are forced to close. They will closely monitor liquidation zones below to find optimal entry points and prepare for a rapid price increase.
Range Traders or scalpers: In a market attempting to find a balance after a price drop, small price fluctuations within a certain range can create opportunities for high-frequency trades. However, quick reflexes and tight risk management are needed to avoid getting caught in unexpected volatility, leveraging short-term price oscillations to accumulate profits.
For traditional investors seeking stability or clear growth momentum, ATUSDT may not be the optimal choice at this time. The market is in a process of "cleansing" and revaluation, requiring patience and a clear strategy. Any decision should be based on thorough analysis and a deep understanding of risks, never relying on emotions.
The deep river has its divers, but who can easily gauge the hearts of people?
This is not investment advice. Please do your own research and make your own investment decisions.
