SPK, the native token of Decentralized Financial (DEFI) Platform Spark, surged to its highest ever high yesterday.
However, the meeting was short-lived. SPK fell by almost 25% in post-peak hours. This is because the wave of profit gains from holders caused a reversal of momentum.
SPK’s Rally Stall: Net Outflow Surge and Bearish Bears Rise
SPK’s Spot Netflow assessment provides insight into the cooling gathering. According to Coinglass, Altcoin witnessed a major surge in net spills from the spot market during today’s session, totaling $4.53 million at the time of this writing.
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Spikes in spot net leaks mean that more tokens have been withdrawn from exchanges than deposits. This trend reflects sales by SPK holders who used tokens’ monthly gatherings to secure profits.
The result has increased downward pressure on prices, increasing the likelihood of pulling back from an all-time high.
Furthermore, SPK’s futures market sentiment is becoming increasingly bearish. This is reflected in the funding rates that have returned only negative values since July 21st.
Funding rates are periodic payments exchanged between long-term and short-traders in permanent futures contracts to match the spot price and contract price of the underlying asset. If the value is negative, the short seller is paying long-term holders.
This shows that bearish sentiment dominates the SPK market and that more traders are betting on lowering prices.
If you make a profit, your SPK will be lower. Will $0.12 then hold $0.11 or $0.11?
The spike in SPK net spills and its negative funding rate suggest that the token is in the revision phase. The long-term fundamentals of tokens may remain intact as defi activity rises, but short-term metrics suggest that SPKs may face additional downsides in the next few trading sessions.
In that scenario, its value could reach $0.12 and the trend could be $0.11.
However, in the case of a profitable food stall, SPK can regain strength and try to break above $0.15, bringing back a record high of $0.19.
Disclaimer
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