Binance introduced ILV futures trading, resulting in a surge in Open Interest as traders seek profits from ILV’s price fluctuations. There’s speculation that ILV could reach $100 soon unless selling pressure intervenes.
As altcoin prices surge, Illuvium (ILV) stands out with a remarkable 126% increase in value over the last 30 days, as per CoinMarketCap. ILV, the native token of the Illuvium ecosystem, operates on the Ethereum (ETH) blockchain and is associated with a fantasy battle game.
While ILV has been listed on Binance, the exchange recently introduced ILV futures trading, allowing traders to take both long and short positions based on market sentiment.
Binance has launched USDⓈ-M $ILV Perpetual Contract, just as we predicted in a tweet on Nov 9.
An investor we shared before deposited 10,000 $ILV($916K) into #Binance after #Binance announced the launch of $ILV Perpetual.https://t.co/rLGUpr7Fye pic.twitter.com/qKHp7dzMJN
— Lookonchain (@lookonchain) November 11, 2023
ILV Holder Makes $916,000 Deposit After Binance Listing
Following its recent listing on Binance, Illuvium (ILV) experienced a notable development as an ILV holder deposited tokens worth $916,000 on the exchange. The purpose behind this significant deposit remains unclear as of now. However, speculation suggests that the investor may be taking a long position on ILV.
ILV’s Continued Surge and Increased Open Interest
In the 24 hours following the deposit, ILV’s impressive performance persisted, registering an additional 5% increase. Notably, the derivatives information portal Coinglass reported a remarkable surge in Open Interest related to ILV during this period.
Open Interest is a metric that measures the number of futures contracts open during a specific trading period. A decrease in Open Interest typically indicates that traders are closing positions. Conversely, a surge in this metric, as observed with ILV, suggests a substantial increase in liquidity in contracts associated with the token.
ILV Open Interest (Source: Coinglass)
Traders Favor Long Positions on ILV Despite Overheating Concerns
Recent data from Coinglass indicates a notable trend among traders, as a considerable number are opting for long positions on Illuvium (ILV). Typically, after a cryptocurrency experiences a strong performance, there is an expectation for the price action to cool down. Surprisingly, ILV seems to defy this customary anticipation, with traders showing a strong bullish sentiment.
ILV Long/Short Ratio Insights
The ILV 1-hour long/short ratio, as reported by Coinglass, currently stands at 1.17. A long/short ratio above 1 suggests a higher prevalence of bullish positions compared to bearish ones. This sentiment is further emphasized by the specific long-to-short positions, indicating a distribution of 54.15% long positions to 45.85% short positions.
ILV 1-Hour Long/Short Ratio (Source: Coinglass)
Considering the observed Open Interest surge and the ongoing upward trajectory in ILV’s price action, there is a possibility that ILV will sustain its current positive momentum. Traders are seemingly unfazed by concerns of overheating, and if the trend persists, ILV could potentially retest the $100 mark before any significant retracement occurs.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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