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The most recent development within worldwide cryptocurrency markets is that, while spot markets are declining, futures markets are also beginning to cool off. One key metric that we monitor to gauge the health of the futures market is called open interest. Open interest measures the total number of outstanding futures contracts that have not been settled. Over the past few weeks, open interest has not only been declining but has also been declining at an accelerated rate. This decline has been seen across the board with all of the major cryptocurrencies. Open Interest Plummets Across Major Assets In the past 30 days, the leading cryptocurrencies have seen a pronounced reduction in open interest, indicating less speculative trading and a more subdued futures market. Entailing some of the most substantial declines are Bitcoin ($BTC) and Ethereum ($ETH), albeit for different reasons. While Bitcoin has seen open interest drop by 11.1%, Ethereum’s drop of 23.8% is not simply following in Bitcoin’s footsteps. Solana ($SOL), which had been one of the more high-profile tokens in the past year, saw open interest decline by 6.2%. Memecoins experienced the most dramatic reduction across the board, with open interest plummeting by 52.1%. Futures markets are cooling alongside spot markets, with a sharp drop in open interest (OI) across all major assets. Over the last 30 days: $BTC OI: -11.1% $ETH OI: -23.8% $SOL OI: -6.2% #Memecoins OI: -52.1% https://t.co/ZTBHOv4p0M pic.twitter.com/7PTmRjNEqE — glassnode (@glassnode) February 20, 2025 This decline in open interest can be viewed as a lessening of speculative interest and a pulling back from leveraged positions, especially in the risky parts of the market, like memecoins. The dip in open interest suggests that a significant number of traders have either closed out their positions or have chosen to stay on the sidelines while the market steadies itself—creating a situation with less potential for market manipulation and a reduced chance of seeing sharp price swings. Funding Rates and Short Positions Signal Market Shift The cost of holding a futures position is determined by funding rates, and these rates allow us to see just how much sentiment in the market has changed for the better. In the case of Bitcoin and Ethereum, their funding rates are slightly positive, nudging ever so gently into the territory of being healthily optimistic. The same cannot be said for Solana, which has funding rates that are now negative. This tells us right away that traders in the futures market have a not-so-furtively bearish outlook on Solana and that they are predominantly betting against the token’s price movement. Funding rates for memecoins have fallen sharply and seem to be the best indicator of today’s market environment. These coins, which were all the rage in late 2024 when they staged a rally of 90.2%, have been pummeled and now find their funding rates squarely in negative territory. This indicates that most market participants are shorting the coins and that levered long trades are being forcefully unwound in what has become a highly speculative and much more cautious market segment. Traders have now moved on to other better-risk-adjusted trading opportunities. Price Action Reflects the Cooling Sentiment The evident cooling in sentiment in futures markets is clearly visible in the actual price formations of the major cryptocurrencies. Since February, Bitcoin has fallen by 5.9%, retreating from earlier momentum that aimed for new price discovery levels. Ethereum, which had been riding high recently on upbeat sentiment from network upgrades, has seen a sharper decline, falling 16.9%. Meanwhile, Solana, which reigned lately as one of the more impressive altcoin performers, has traced back an even steeper 33.1% decline. Market`s momentum has stalled after an attempt to push #Bitcoin into price discovery. $BTC is down 5.9% since Feb, while $ETH and $SOL have dropped 16.9% and 33.1%. Memecoins, which surged 90.2% in late 2024, have seen the sharpest correction at -37.4% https://t.co/r3bgR1WY9E pic.twitter.com/SFLnwCFn70 — glassnode (@glassnode) February 20, 2025 Memecoins, which had captivated traders and investors, are now experiencing the sharpest correction. Since the end of 2024, the tokens are down 37.4%. Following that corrective trend, it is now believed that Memecoins are just a natural market component, unable to escape the gravity of a trend following downward steps. What will happen next is anybody’s guess. Examining the wider movement of the market since the beginning of 2023, Bitcoin (BTC) has preserved a steady upward movement, always positioned at around 3.4 times its value of April 2023. Solana (SOL), on the other hand, traded at an astounding high of 11.8 times its April 2023 worth but has since fallen back to 7.6 times. Ethereum (ETH) has been less impressive, with its worth veering between 1.3x and 2.0x—indicative of not nearly hitting the higher growth marks of either Bitcoin or Solana. The Market Is Cooling, but What’s Next? The current bullish momentum of major cryptocurrencies and meme tokens appears frail. While Bitcoin definitely has a steady upward path and Ethereum and Solana strive to overcome recent downturns, the risk of high-leverage positions recently played out in a sharp correction across assets viewed as risky. These include the meme tokens that sell for a fraction of a penny. Right now, a lot of traders are taking a more careful, cautious approach. They’re after not-profit-with-loss scenarios—in other words, conditions that are in their favor—with the hope that the market is going to become more stable and adjust to recent, um, turbulence. With reduced open interest and negative funding rates, what are these traders doing? Well, they’re most likely sitting on their hands and waiting—for what, exactly? They want to see the market’s next moves and—most importantly—its next big money-making catalyst. As we progress into 2025, the cryptocurrency market’s power of adaptation will be put to the test. Whether investors or traders, all market participants will collectively hold their breath to see what renewed interest or further cooling signs will surface next. Overall market sentiment remains in beta as the evolving conditions push and pull various sentiment drivers. At the same time, the market’s leading assets, Bitcoin and Ethereum, may serve as principal indicators of the market’s overall movement. It remains to be seen whether these two will hold their fort atop the crypto asset hierarchy, or if up-and-coming assets like Solana and the memecoins will claw back to dominance in the month’s upcoming. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: peshkov/ 123RF // Image Effects by Colorcinch
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
Ethereum Price Could Still Reclaim $4,000 Based On This Bullish Divergence
The Ethereum price appeared to be finally gearing for a strong bullish breakout after multiple weeks of disappointing and sluggish action. However, this bullish dream ended almost immediately after it started as nearly $1.5 billion worth of ETH tokens were drained from the ByBit exchange. Ethereum, which traded as high as $2,840 earlier on Friday, February 21, dropped towards $2,600 on the back of news of the ByBit hack. Interestingly, recent on-chain data suggests that the altcoin’s price could still make its way to $4,000 before the end of this cycle. Could ETH Price Still Record A 60% Rally This Cycle? In a Quicktake post on the CryptoQuant platform, an analyst with the pseudonym Crypto Sunmoon identified a particular bullish divergence that offers insight into the Ethereum price performance in the near future. This bullish observation is based on recent movements of ETH’s “taker buy/sell ratio” across all exchanges. Related Reading: Dogecoin Price On The Edge: Breakout Or Breakdown—What’s Next? This metric measures the taker buy and taker sell volumes for a specific cryptocurrency (Ethereum, in this case). When the taker buy/sell ratio is greater than one, it implies that the taker buy volume is higher than the taker sell volume. This is typically considered a bullish signal, indicating the willingness of investors to pay a higher price for an asset. On the contrary, a less-than-one taker buy/sell ratio indicates that sellers are overwhelming the buyers in the market. This scenario suggests that more sellers are willing to offload their assets at a lower price, signaling a bearish shift in investor sentiment. Crypto Sunmoon noted that the 100-day exponential moving average (EMA) of the Ethereum taker buy/sell ratio on all exchanges has been rising in recent weeks. The Ethereum price, on the other hand, has been declining since mid-December. According to the analyst, this divergence is positive, as it indicates that a bearish trend has ended and an upward trend could be starting. The last time this bullish divergence occurred, the Ethereum price traveled from beneath $2,500 to above $4,000 (over 60% rally). While investors would view a reclaim of $3,000 as a victory for Ethereum, history and this bullish divergence suggest that the altcoin’s price could still climb toward the $4,000 mark before the end of the current cycle. Ethereum Price At A Glance As of this writing, the price of Ethereum stands around $2,650, reflecting a nearly 4% decline in the past 24 hours. Related Reading: More Pain Ahead For Solana? Dangerous Price Drop To $125 Looms With This Support Retest Featured image from iStock, chart from TradingView NullTx
1Fuel Wallet Exchange Offers Refuge As 40% Gains Bonus In 24h – Don’t Miss Out
With market uncertainty rising, 1Fuel Wallet Exchange is emerging as a go-to platform for seamless, decentralized trading. Its cross-chain capabilities, AI-powered tools, and P2P exchange make trading more efficient than ever. Investors are taking notice,1Fuel has already raised $2.3 million. Now, with a limited-time 40% bonus offer, early adopters have a unique opportunity to maximize gains in just 24 hours. DOGE meme coin eyes breakout as SEC reviews spot ETF filing Dogecoin (DOGE) is approaching a critical juncture, with technical indicators pointing to a potential 25% breakout. A symmetrical triangle pattern on the 1-hour chart suggests Dogecoin’s price is consolidating, preparing for a significant move. Analysts are closely watching whether Dogecoin surges higher or faces another downturn. According to Crypto Analyst Ali Martinez, the symmetrical triangle signals an impending breakout as Dogecoin’s price squeezes between trendlines. Meanwhile, the SEC has acknowledged Grayscale’s filing for a spot Dogecoin ETF, marking the beginning of its review process. If approved, the Grayscale Dogecoin Trust could bring Dogecoin to mainstream investment markets. The DOGE meme coin trades at $0.26, and analysts expect a rally to $1. Dogecoin is still a top crypto contender with growing institutional interest and technical momentum building. Dogwifhat (WIF) struggles below $1 after 87% drop Dogwifhat (WIF) was among the best cryptos to perform during the last market cycle, advancing 3,000% to an all-time high in March 2024. Dogwifhat was the largest meme coin in the Solana ecosystem and rapidly grew well-known, but it is now not among the top 100 cryptocurrencies. The downturn began in November 2024 and extended into 2025, with Dogwifhat plummeting 87% from its peak. On Feb. 3, 2025, Dogwifhat hit a low of $0.55 and struggled to recover. Currently, Dogwifhat trades at $0.60, sitting below the crucial $1 threshold needed to trigger bullish momentum. Despite its decline, Dogwifhat remains a key player in Solana’s meme coin sector. Analysts suggest that a break back above $1 could reignite investor interest, but until then, Dogwifhat faces an uncertain path in the volatile crypto market. 1Fuel (OFT): Cross-chain trading, AI tools, and exclusive bonuses 1Fuel (OFT) is transforming decentralized trading with its cross-chain compatibility, allowing seamless transactions across multiple blockchains. This breakthrough enhances liquidity for lesser-known tokens, giving traders more flexibility while creating a more dynamic and efficient market. By eliminating barriers between networks, 1Fuel makes decentralized trading smoother, benefiting individual traders, projects, and exchanges alike. Beyond cross-chain functionality, 1Fuel integrates AI-powered trading tools and a peer-to-peer (P2P) exchange, simplifying access to smaller-cap coins. Traders can connect directly with preferred parties, improving transaction control and expanding beyond traditional platforms. Looking ahead, 1Fuel is bridging crypto and traditional finance with its upcoming crypto debit and credit card. This card will enable users to spend digital assets anywhere Visa and Mastercard are accepted, further enhancing real-world utility and adoption. For the next five days, 1Fuel is offering its biggest bonuses, with up to 40% rewards for investors purchasing 2,000+ tokens. If the community reaches 3 million participants by Sunday, the 23rd, the beta wallet release will be pushed live earlier. At just $0.018 per token, 1Fuel presents an attractive entry point. Unlike many speculative tokens, 1Fuel’s value is built on tangible utility, making it a compelling investment in the evolving crypto landscape. For more information about 1Fuel presale, visit the links below: Website: https://1fuel.io/ Telegram: https://t.me/Portal_1Fuel Twitter/X – https://x.com/1Fuel_ Disclosure: This is a sponsored press release. Please do your research before buying any cryptocurrency or investing in any projects. Read the full disclosure here . NullTx
