Kamino Protocol [KMNO] joined the top market gainers in the past day, as the cryptocurrency, presently valued at $189 million, jumped 24%.
Retail investors have driven much of the asset’s gains through increased capital inflows, while whales have also maintained interest in KMNO.
The Whale Retail Delta, which tracks the flow from these two investor groups, shows that the delta, still within the positive region, fell from a high of 0.66 to 0.17.
When the delta drops while still being positive, it confirms that retail participation was significant. However, whales still maintained their presence.
The implications for KMNO remain open to interpretation. However, one key factor to watch for would be the delta turning negative.
In that case, retail investors would dominate the majority of trades, which may not be good for the price in the near to long term, as this group often sells off its assets quicker.
For now, the outlook based on participation remains largely bullish and could help sustain the asset’s performance.
Short liquidations outweigh long positions
There’s real momentum backing this move, as seen with the rising volume across the market. Volume in the perpetual market alone surged 544% to $70.81 million, with volume from the Spot market bringing the cumulative volume to approximately $95 million.
Historically, assets in the market tend to rally higher when there’s a corresponding surge in volume and the price is already performing positively. This being the case with KMNO, there’s still more upward potential.
The gap is more visible when the long and short liquidated capital is studied. Short traders had $229,690 worth of positions liquidated, compared to $66,140 in long positions during the same period.
This means short traders recorded 3.47 times more liquidations than long traders, showing greater pressure on bearish positions during KMNO’s rally.
Data shows that trading long has a higher chance of recording more gains than going short, if properly positioned. This could be the direction more traders embrace, thus fueling the market rally.
Bullish sentiment supports KMNO’s momentum
While the overall outlook in the market has remained largely bullish, it’s important to track investor sentiment, which feeds into price.
The sentiment, which tracks whether the market is bullish or bearish and to what extent, shows that the former is the case. Press time data shows the sentiment to have a reading of roughly 4.39 on a scale between -10 and 10.
This confirms that, at the moment, investors in the market consider the asset a good buy and are likely to accumulate further.
Watching a shift in sentiment can inform whether there’s a change in investor bias and whether the asset is likely to continue surging or a pullback would happen.
Final Summary
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KMNO’s 24% rally is backed by rising trading volume, with perpetual volume surging 544% to $70.81 million.
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Positive Whale Retail Delta and bullish sentiment show continued market participation, but a further delta decline could change the outlook.