HomeBitcoinOpen Interest Soars By $1 Billion In A Single Day

Open Interest Soars By $1 Billion In A Single Day

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FLOKI cryptocurrency witnessed an astonishing surge of nearly 60%, reaching a seven-month high. This surge follows an announcement from DWF Labs, a major player in the digital asset market and a Web3 investment firm, revealing plans to infuse $10 million into FLOKI tokens.

FLOKI, often hailed as the people’s cryptocurrency, has been gaining attention for its emphasis on utility, philanthropy, community, and marketing.

DWF Labs Pioneers Web3 Investment: $10 Million FLOKI Boost

DWF Labs, standing tall as a pioneering force in Web3 investment and market-making, operates across spot and derivatives markets on over 60 leading exchanges, underscoring its influence and expertise in the crypto sphere.

The company’s decision to pour in $10 million in FLOKI tokens is seen as a strategic move to bolster the meme coin’s ecosystem. The investment is spread over two years, indicating a long-term commitment to the growth and sustainability of the meme coin.

Currently trading at $0.000049, the coin experienced a daily trading volume surge of 142%, reaching approximately $343 million. The recent bullish momentum has propelled FLOKI to a seven-month high, a price point not seen since early May.

With a market cap of $472 million, the digital asset currently ranks as the 135th-largest digital currency globally, underscoring its rising significance in the crypto market.

Market Metrics And Potential Price Correction

Recent data from Santiment reveals interesting market metrics for FLOKI. Its total open interest (OI) has surged by $1 billion in the past day, climbing from $2.2 billion to $3.2 billion.

This spike in open interest aligns with a notable increase in the number of long-positioned trades, indicating a bullish sentiment among investors.

Source: Santiment

This abrupt increase in open interest suggests a significant influx of new positions or a shift in the existing ones. Traders and investors often scrutinize open interest as a crucial metric, as it provides insights into the depth of market participation and sentiment.

OI Spike: Traders On Alert For Volatility Or Trend Reversal

From a technical analysis perspective, the surge in open interest could be indicative of a potential volatility spike or a forthcoming trend reversal. Traders may interpret this data as a signal to closely monitor price movements and other technical indicators for confirmation.

Santiment data also points out that around 90% of the total FLOKI supply is currently in profit at the current price point. This high profitability percentage raises the possibility of profit-taking by whales, hinting at a potential price “cooldown” in the near future. As FLOKI holders enjoy significant gains, the market may see increased selling pressure as investors capitalize on profits.

FLOKI seven-day price action. Source: Coingecko

Related Reading: All Eyes On SEC As Spot Ethereum ETF Issuers Gear Up For March Meeting

Featured image from Master The Crypto, chart from TradingView

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