The broader market saw a retraction in the past 24 hours, but a select few tokens are still performing decently. One of them is Cash Cat [CASHCAT], the memecoin that surged 25% within that same window.
While the broader market maintains this bullish outlook, the downside risk still persists, especially when considering the capital liquidated in the market and what it means for the long side that has been dominating.
Perpetual flow returns positive
The perpetual market flow in capital has played a key role in the asset’s rally to the upside. At the time of writing, there has been a flow of $7.18 million into the asset, with its netflow rounding up to about $444,730, according to the data at the time of the report.
The positive netflow in this case measures the disparity between the capital that flowed into the CASHCAT perpetual market versus the outflow, likely from sales.
What’s more notable is that this surge moves against the cumulative flows of the past three days, which showed that there had been more selling of CASHCAT in the market, with the netflow dropping to $18,410 as buyers have begun to step in.
The conditions warrant more upside
The perpetual market conditions still suggest that there is overall room for more upside for CASHCAT based on the present readings.
This is based on the analysis of Open Interest, a measure of capital in the perpetual market, and the Funding Rate, which shows whether this capital is led by long or short positions.
CoinGlass data reported that Open Interest had surged to around $32.4 million, forming a local high, a level that it last reached on the 14th of August.
Rising capital in the perpetual market does not, however, imply that the market is bullish without adding context from the funding rate data.
Right now, the Funding Rate has a reading of 0.0409%, which suggests that there are a higher amount of long positions than short positions in the market.
If positioning is still in favor of longs in the market, it would play a key role in helping the asset maintain a bullish stance, unless conditions see a massive change.
Final Summary
- CASHCAT gains support from positive perpetual flows and rising Open Interest, with longs continuing to dominate market positioning.
- Liquidations remain closely balanced between longs and shorts, keeping downside risk alive despite the token’s bullish momentum.