Tellor’s TRB token demonstrated extraordinary market behavior that caught the attention of many seasoned traders. The token experienced a dramatic escalation in its value, soaring over 100%, followed by a precipitous 60% decline. This volatility was not typical for a cryptocurrency with a substantial market capitalization, as TRB’s market cap significantly exceeds $1 million.
The timing of this fluctuation was no coincidence. December 31, a date generally marked by lower trading volumes and reduced monitoring, presented an opportune moment for potential market manipulation. This period typically experiences diminished liquidity and less oversight, making it an ideal environment for executing large-scale price movements.
One key aspect to consider in this analysis is the notable increase in Cumulative Volume Delta (CVD), representing the net difference between coins bought and sold over time. This metric showed a significant uptick, deviating from common trading patterns observed in the cryptocurrency markets. Typically, short positions are more prevalent in perpetual swaps, serving as either a hedge or an attempt to capitalize on anticipated price drops. However, in TRB’s case, the situation was remarkably different.
Before the dramatic price movement, there was a notable liquidation cascade, marked by many long positions being liquidated. This event reduced liquidity and the number of players in the market, setting the stage for the subsequent price drop. Interestingly, the major sell-off that followed was primarily driven by activities on Binance Futures, as evidenced by the CVD plot. This divergence between the spot and perpetual markets suggests an earlier onset of selling pressure.
However, an anomaly was observed in the correlation between Open Interest (OI) and CVD. Conventionally, a decrease in CVD, especially amidst widespread liquidations, would correspond with a drop in OI. But in this instance, OI increased despite the CVD decrease. This discrepancy becomes clear when considering OI in terms of dollar value, which aligns more coherently with market dynamics.
The scale of these liquidations was substantial, marked by a steep decline in CVD. This indicates a predominance of forced sell trades, likely due to automated liquidations. The absence of sufficient liquidity amplified the market impact of these trades, at times constituting more than 10% of total market activity.
TRB trades within a narrow range, oscillating between $121 and $138. This pattern indicates a bearish trend, as the price has decreased by over 11% to $122 in the last 24 hours. Tellor currently holds the 146th spot in CoinMarketCap’s rankings, with a market capitalization of $309 million. The trading volume for Tellor in the last 24 hours stands at $148 million, underscoring significant market engagement despite recent fluctuations.
