DeepBook rises 12% amid mixed market sentiment and $23M volume

DeepBook (DEEP) experienced a 12% price increase alongside a 77% surge in combined spot and perpetual trading volume, reaching approximately $23 million. Despite the price rally, market data indicates conflicting sentiment among different participant groups.

According to CoinGlass data, retail traders and whales showed bullish tendencies, with long/short ratios of 2.12 and 1.12, respectively. In contrast, Smart Money indicators signaled an “Extremely Bearish” position. While long positions accounted for 50.7% of volume compared to 49.3% for shorts, the margin of buyer dominance remained slim.

Additionally, the funding rate for DeepBook perpetual contracts turned negative at -0.0027%, suggesting a bearish tilt in perpetual pricing despite the asset's price gains. While similar negative funding rate reversals occurred in mid-September before recovering, it remains uncertain if this current movement will lead to a short squeeze or further price appreciation.