Meteora [MET] jumps 30% with 3000% volume spike – Can it hold?

Meteora [MET] has captured the market’s interest with a significant 30% surge in just 24 hours.

The surge was accompanied by a notable increase in trading activity, with volume spiking over 3000% at the time of writing.

This alignment often indicates solid support behind the move, rather than a random spike. However, the rapid growth raises familiar questions.

Will this momentum be sustained?

Is there new capital flowing into MET?

To assess the strength of the surge, it is important to look beyond just the price. Open Interest saw a sharp rise during the same period, reflecting the number of active positions in the market.

When both price and Open Interest [OI] increase together, it typically signifies new participation.

In the case of MET, this alignment remained evident.

The rally seemed to be supported by fresh capital, indicating growing confidence and potentially supporting further continuation in the short term.

Are funding levels indicating risk?

MET’s Weighted Funding Rates remained above average levels, suggesting that long positions were dominating derivatives activity.

Elevated Funding Rates often indicate that the asset may be overbought.

This scenario warrants caution, even as bullish positions remain strong. It also suggests that retail traders may hesitate at current price levels.

Are retail traders stepping back?

Derivative data indicates a shift in positioning behavior.

With only 47% of positions remaining long, there is a reduction in bullish exposure among traders. This contrasts with the previous dominance of long positions.

This imbalance suggests reluctance from smaller participants, while larger players remain active.

As a result, the rally seems to be increasingly driven by larger market participants, which could limit liquidity if broader participation does not return.

On the daily chart, price volatility is evident through sharp intraday spikes.

Despite this, MET continues to trade above both the 20-day and 50-day Exponential Moving Averages [EMAs], indicating that the overall trend remains intact despite short-term fluctuations.

However, the next move will depend on whether participation expands beyond current levels.

Final Summary

• MET’s 30% rally was supported by a 3000% surge in volume, indicating strong market interest.
• With only 47% long positions, it appears that retail traders are not fully participating in the rally.