Venice Token ($VVV) fell 13% to $16.03 at press time, even as its protocol-level performance continued to improve.
Data from DeFiLlama showed record quarterly earnings of $1.1 million, while monthly earnings also reached a record $654,000. The increase suggested that platform activity and usage had grown despite recent market turmoil.
However, stronger protocol performance had not yet translated into price support for $VVV. The divergence raised questions about whether Venice Token was entering a bearish phase and which traders were driving the decline.
Are derivatives traders pressuring $VVV?
Venice Token’s perpetual market showed the clearest signs of weakening trader sentiment. The funding rate fell from 0.0141% on August 28 to 0.0001% at press time.
The funding rate remained marginally positive, meaning the decline pointed to weakening demand from long traders rather than confirmed dominance by short sellers.
CoinGlass data also showed that $VVV’s long/short ratio fell to 0.86. A reading below one indicates that short accounts outnumber long accounts in the measured market.
Together, the funding rate and long/short ratio pointed to a weaker derivatives bias. Continued short positioning could keep pressure on the Venice Token price.
Are spot traders buying Venice Token?
In contrast, $VVV’s spot market netflow remained negative during recent sessions. Approximately $267,000 left centralized exchanges over a 12-hour period, while negative netflows had persisted for three days.
These outflows could indicate that holders were withdrawing $VVV from exchanges, reducing the supply immediately available for selling. However, negative netflows alone cannot confirm fresh buying or long-term accumulation.
Venice Token therefore faced a clear market split. Derivatives traders leaned bearish, while spot outflows suggested that exchange-held supply was tightening.
If spot accumulation continues, $VVV could attempt a near-term recovery. Persistent derivatives pressure, however, could delay that move despite Venice Token’s record earnings.
Venice Token market outlook
Venice Token fell 13% to $16.03 despite recording $1.1 million in quarterly earnings. Its funding rate dropped sharply but remained marginally positive, signaling weaker long demand rather than confirmed short dominance.
Source: cryptonews.net