Meteora (MET) gained market attention after surging 30% in 24 hours.
The move did not go smoothly. Trading activity has increased along with prices, with volume increasing more than 3,000% at press time.
This type of alignment often indicates that the movement has real support, not just a random spike. Yet such rapid expansion has raised a familiar concern.
Can this momentum really hold?
Is new money entering the MET?
To assess strength, it helps to look beyond price. Open Interest increased sharply during the same period. This metric reflects the number of active positions in the market.
When price and Open Interest (OI) rise together, it usually signals new participation.
In the case of the MET, this alignment remained clear.
The rally appears to be supported by new capital, not just turnover of existing holders. This change suggests growing confidence, likely to support continuation in the near term.
Are funding levels at risk?
The MET’s weighted funding rates remained above average levels at the time of publication. This indicates that long positions dominate derivatives activity.
However, high funding rates often indicate that the asset can trade at high levels.
This setup introduced caution, even if the bullish positioning remained intact. It also suggests that retail traders may be hesitant at current prices.
Are retail traders backing down?
The derived data showed a change in positioning behavior.
Only 47% of positions remained long, indicating a reduction in traders’ bullish exposure. This contrasts with the previous dominance of long positions.
This imbalance reflects the hesitation of small participants, even if the largest players remain active.
As a result, the recovery seems increasingly driven by the largest market players. However, this could limit liquidity if wider participation does not return.
On the daily chart, price volatility remained visible through strong intraday spikes.
However, MET continued to trade above the 20-day and 50-day exponential moving averages (EMA). This suggests that the general trend has remained intact despite short-term fluctuations.
However, the next step will depend on whether participation goes beyond current levels.
Final summary
- The 30% rise in MET was supported by a 3,000% rise in volumes, demonstrating the strong market focus behind the move.
- Only 47% of long positions show that retail traders are not fully participating in the rally.
