#DCR Decred's price is declining, but all internal information indicates a depletion of market liquidity.
First, regarding the lending pool, the interest rate is around 45% even at VIP9. The KINK (the threshold where the interest rate sharply increases once a certain lending rate is exceeded) is likely set at an 80% lending rate. Considering this, over 90% of the lending pool has already been lent out and is short. Given that the VIP Level 9 lending cap is 60,000 DCR, the lending pool size is estimated to be at least 300,000 DCR. This implies a minimum short position of around 270,000 DCR.
Furthermore, examine Decred's staking pool. It is over-target by more than 10%. This likely represents funds previously allocated to Binance's Flexible Staking being moved out. It's safe to assume very little physical Decred is circulating in the market. What's being sold now is solely what short sellers have forcibly borrowed through lending.
Also, observe the platform's concentration. You can see it has dropped sharply in recent days. This suggests some large short sellers who had borrowed significant amounts of DCR have sold their positions. It appears short sellers have likely sold off a substantial portion of the DCR they borrowed.
Based on this information, it is highly likely that massive short positions will be liquidated in the near future. A situation similar to the GameStop stock phenomenon is expected. Now is the time to buy against the trend, and it is probably best to purchase gradually using dollar-cost averaging.