Siren (SIREN) may be approaching recovery despite intense capital outflows. The token fell 14% in the past day, causing momentum to shift towards a strong downtrend in the short term.
Liquidation data highlighted this weakness. While long investors lost $172,000, they lost only $22,000 in short liquidations. Despite this, buyers continued to add long positions despite the losses.
What do SIREN momentum indicators suggest?
Momentum indicators pointed out that the upward trend was increasing.
The Moving Average Convergence Divergence (MACD), which measures trend momentum, showed an early uptrend on June 27. The MACD line moving above the signal line indicates that buyers are starting to gain strength again.
This move was in line with improving capital flows.
The Money Flow Index (MFI), which tracks buying and selling pressure, has recovered after falling below 20, the oversold threshold.
The indicator has since climbed to around 38 and has continued to rise; This shows that new capital has returned to SIREN.
Are investors still counting on higher prices?
Despite heavy losses among long traders, market positioning remained bullish.
Funding Rates remained positive at 0.0951% at the time of writing; This shows that investors continue to pay a premium to maintain long positions.
Positive Funding Rates showed that bullish expectations continued despite the recent decline.
However, Open Interest fell 15% to $35.97 million, reflecting reduced participation after the sale. However, the remaining positions largely remained in the long-term trend, which could support the recovery if purchasing demand strengthens.
Where can SIREN go next?
The Liquidation Heatmap highlighted several clusters of liquidity above the current price.
These clusters often attract price movements as markets seek liquidity. There’s room left for this SIREN If the momentum continues, buyers may try to make a move higher.
On top of that, improving capital flows and bullish momentum indicators have supported the possibility of a short-term recovery.
Despite this, price confirmation remained necessary before a sustainable return could be achieved.
Final Summary
- SIREN fell 14% during the sell-off, with long-term investors absorbing most of the liquidation losses.
- Despite this, the MACD, MFI, positive Funding Rates and overall liquidity clusters suggested that the recovery could still develop if buyers regain control.
