Despite price recovery, professional Atrium traders remain pessimistic
As can be seen from the data on derivatives markets, professional traders do not make much effort to recover Atrium prices, and sentiment in futures markets is largely downward.
To Report Quinn Telegraph, Atrium hit $ 3,280 on February 10, up 51.5 percent from $ 2,160 on January 24. This is the lowest price in the last 6 months and partly indicates the reason for the decline in the feelings of traders in derivatives markets.
Atrium’s annual premium futures, however, fell to 2.5 percent yesterday, despite rising 11 percent to $ 2,700, indicating a downward trend. These conditions indicate the skepticism of investors regarding the change in the mechanism of the Atrium network to prove the shares.
The much-anticipated Atrium Network upgrade, which is expected to significantly increase Atrium’s processing capacity using Sharding, should be implemented in late 2022 or early 2023.
Long-term analysis of atrium function makes analysts feel better; Because this digital currency is currently 45% away from its record $ 4,870.
In addition, the adjusted value of the total locked capital in the Atrium Network Defy protocols has remained at 42.87 million Atrium despite the price correction.
As shown in the photo above, the value of Atrium’s locked-in capital increased 16.5 percent over the three months, indicating growth in the Decentralized Finance Sector (DeFi) and the NFT market.
However, due to the delay in upgrading the network and the deteriorating global situation, professional traders are becoming frustrated and anxious, and this is a feeling that is confirmed by the various indicators of the derivatives market.
Atrium futures market has reached its lowest level in the last 7 months
Micro-investors usually avoid quarterly futures trading due to fixed settlement dates and price differences from cash markets. However, the main advantage of this type of contract is the lack of fluctuation in the funding rate (Funding Rate) and therefore the activity of arbitrage platforms and professional traders is increasing.
The term capitalization rate in the futures market refers to the amount of commission that long-term holders (those who believe prices are rising) and short-term holders (those who believe prices are falling) must pay to keep the market in balance.
These fixed-term contracts are usually traded at a small price difference compared to the current market, which indicates that sellers expect higher profits to maintain long-term trading positions. This situation, which is not limited to the digital currency market, is known as contango; That is, conditions in which prices in futures markets are higher than in current markets.
Futures are usually traded at an annual premium of 5 to 15 percent under normal market conditions. However, as shown in the chart above, Atrium’s annual premium fell to a very low 2.5 percent from 20 percent on October 21st.
Although the overall trend of the index remains positive, it has fallen to its lowest level in the last 7 months. The fall of the Atrium price to $ 2,300 on February 24 caused the bearish sentiment to overwhelm the investors and even the 10% improvement yesterday was not enough to change the general trend.
At present, the data show little sign of buyers trying to regain market control. If buyers had worked harder, the premium rate for Atrium futures would have been positive after such a jump in prices.