Prom [PROM] remains one of the leading crypto assets in the market, with the asset delivering a 48% gain in the past 24 hours alone.
The surge in gains has been a build-up of weeks of bullish performance in the market. To put this into perspective, the asset has accrued a 176% gain in the past seven days, while that figure nearly doubled to 326% over the last 30 days, according to the CoinGlass performance chart.
At the time of writing, PROM’s outlook appears bullish, with the asset seeing capital flow across the market. Both the Spot and perpetual markets have recorded major capital inflows. However, funding data revealed a trend that could impact the market’s direction in the near term.
Capital flow is bullish
At the time of writing, there has been a flow of roughly $5.47 million in net inflow, supporting the buy side. This suggests that the market is likely to trend further upward.
The flow of capital on the buy side of the perpetual market has lasted for an extended period.
In fact, netflow data shows that traders recorded roughly $16.8 million in netflow over the last five days, with net buys reaching approximately $463.89 million against $480.72 million in sells.
Traders also pushed capital through the Spot market, although the flow remained smaller over the shorter timeframe. Over the last 12 hours, the Spot market recorded roughly $239,940 in netflow, alongside about $7.13 million in buy volume.
The bigger picture shows a warning sign
There are clear warning signs that investors could witness a major sell-off in price, as the funding rate has turned negative.
At the time of this analysis, the Funding Rate shows which side of the market is taking the lead, whether bullish or bearish, based on whether long positions or short positions are dominant.
Presently, shorts have taken over the steering wheel, with the Funding Rate turning negative at -0.0009%, according to the CoinGlass chart.
The sudden flip shows that investors are now betting that the price is likely to drop further from its current level. This has occurred in the past, and previous instances of negative funding have coincided with price corrections before the asset resumed its rally.
If the negative Funding Rate extends beyond this level, falls further, and remains negative for several days, the price could see a significant drop below its current levels.
Final Summary
- PROM has gained over 300% in 30 days, extending a powerful rally driven by strong market momentum and capital inflows.
- Negative funding raises a warning, suggesting rising short positioning and the possibility of a price correction if bearish pressure persists.