Key Takeaways
Why did BLESS drop 44% despite bullish investor sentiment
A major liquidity outflow in the derivatives market, coupled with closed contracts and low overall trading volume, drove the sharp decline.
Can BLESS recover from this drop?
Short-term outlook is bearish, but potential liquidation clusters and strong Binance buying pressure suggest a long-term upside remains possible.
Bless [BLESS] opened the day with a sharp decline, shedding 44% of its value at press time, one of the steepest losses in the market.
The liquidity outflow came as a shock, even as several investors maintained a bullish stance. AMBCrypto’s analysis examined the factors driving the decline and BLESS’s potential price trajectory.
Going against the bulls
The drop in BLESS prices contrasts sharply with the broader market’s bullish sentiment. In fact, 82% of investors remain bullish on BLESS, according to CoinMarketCap data.
Typically, a high concentration of bullish investors usually reflects strong long-term conviction, suggesting they plan to hold or increase their positions. But that hasn’t been the case for BLESS, which continues to hit new lows.
Interestingly, AMBCrypto found that Binance traders remain among the most bullish, defying the broader bearish sentiment.
Source: CoinGlass
At press time, Binance’s Long/Short Ratio climbed steadily to 1.98 over the past day. A reading above 1 signals more buying than selling, with higher values reflecting stronger bullish sentiment.
This optimism may be partly driven by BLESS’s recent launch of Binance Aloha, which enabled early positioning on the asset.
What sparked the massive price decline?
AMBCrypto traced the decline to a major liquidity outflow from the derivatives market.
Despite this buying pressure from Binance traders, overall market volume remains low. In fact, the broader Long-to-Short Ratio stood at 0.94, at the time of writing, indicating that selling still outweighs buying activity.
Source: CoinGlass
Data shows the drop coincided with a sharp fall in the Open Interest Weighted Funding Rate, sliding from 0.0025% to 0.0014%.
A steep decline in this metric suggests that a majority of derivative contracts on BLESS were closed. The downward trend signals the likelihood of further closures.
These factors contributed to the massive outflows BLESS witnessed in the past day. If the trend persists, the asset could see further price declines.
Liquidation map shows price climb clusters
The liquidation map highlights potential price zones for BLESS.
It shows three key clusters for short liquidations compared with fewer clusters for long liquidations.
If shorts dominate and price moves toward these clusters, it could trigger a rally, pushing BLESS higher on the charts. Conversely, if longs take control, the asset could extend its upward run toward previous peaks.
Source: CoinGlass
For now, the bearish outlook for BLESS appears short-term, while its long-term trajectory remains tilted to the upside.
