SYRUP crypto jumps 34% but bearish signals emerge – What’s next?

• SYRUP has experienced a surge in value, driven by Futures traders opening long positions on the asset.
• However, Spot traders are resisting the rally, exerting downward pressure on the price.

Over the last 24 hours, Maple Finance [SYRUP] has surged by 19%, bringing its monthly gain to 34%.

While market sentiment seems positive for further gains, there are signs of potential resistance that could hinder the asset’s progress. Here’s a breakdown of the current situation:

Bullish sentiment drives the rally

According to CoinGlass, traders have shown confidence in SYRUP’s upward trajectory.

The Taker Buy/Sell Ratio, a measure of buying and selling activity in the derivatives market, indicates a rise in buying interest as the ratio surpasses 1.

This surge in buying coincides with a notable increase in open derivative contracts.

Source: CoinGlass

The Open Interest Weighted Funding Rate is currently at 0.0022%, indicating heightened activity in the market.

A positive funding rate suggests strong bullish sentiment, with a sustained upward trend potentially leading SYRUP further up.

Additionally, Community Sentiment has increased, reflecting investor expectations of a price rally.

Source: CoinMarketCap

Current data from CoinMarketCap suggests that investors are inclined to hold onto SYRUP, indicating a bullish long-term outlook.

Resistance builds as selling pressure mounts

Despite the positive sentiment, there are signs of resistance. Some investors are placing sell orders, leading to increased downward pressure. This pressure is further compounded by Spot traders.

In recent trading sessions, over $1.3 million worth of SYRUP has been sold, marking a significant increase in daily selling volume.

Source: Coinglass

This selling pressure has persisted, resulting in a total weekly sell-off of $3.6 million, the highest recorded level.

If this selling trend continues, SYRUP could risk losing its recent gains from the past month. An analysis of the asset’s liquidity position is crucial to determine its next move.

Mixed outlook from liquidity analysis

Examining the liquidation heatmap reveals no clear bias for SYRUP’s price direction.

While there are liquidity levels above and below the current price, larger clusters of liquidity are situated above, hinting at a potential upward movement.

Source: CoinGlass

Higher liquidity levels above the current price, coupled with a favorable price trend, often indicate a continuation towards those levels.

If SYRUP reaches these zones and clears the unfilled orders, a potential reversal could occur, especially if significant orders are waiting below.