Perp traders flee NIGHT as selling pressure triggers 41% crash
NIGHT has entered a pronounced bearish phase as perpetual (perp) market participants withdraw capital. The token fell roughly 41% over three weeks and dropped a further ~10% in the last 24 hours. CoinGlass data shows a $5.4 million outflow from NIGHT perpetuals in the past day, leaving perp contract balances at about $47.95 million. Open-interest and funding-rate metrics are skewed toward shorts; the Open Interest–Weighted Funding Rate is negative (around -0.0156%), indicating dominant sell-side pressure. Binance and OKX are identified as primary drivers of the sell-off — both exchanges show taker buy/sell ratios below 1 (Binance 0.533; OKX 0.77), with Binance holding the largest share of NIGHT open interest. Liquidation heatmaps point to potential further downside toward ~$0.060 as price may be pulled into lower liquidity clusters; significant liquidity clusters exist above current price near ~$0.073, offering a possible rebound target if buying returns. For traders: short-term outlook is bearish — expect continued volatility, elevated liquidation risk, and further downside unless funding rates normalize or buy-side liquidity from major exchanges reappears.
Bearish
Data points to sustained sell-side dominance in NIGHT’s perpetual markets. Key indicators: a 41% three-week decline, a further ~10% 24h drop, $5.4M perp outflow to $47.95M remaining balance, negative OI-weighted funding rate (~-0.0156%), and taker buy/sell ratios below 1 on Binance (0.533) and OKX (0.77). Binance’s large share of NIGHT open interest magnifies the impact; when major CEX traders turn bearish, price tends to follow. Historical parallels: similar perp-driven sell-offs (e.g., altcoins in 2021–2022 when funding turned sharply negative) produced accelerated drawdowns and clustered liquidations that dragged prices toward low-liquidity zones before eventual rebounds. Short-term implications: elevated downside risk, higher volatility, and increased liquidation cascades. Traders should avoid aggressive long positions until funding normalizes or buy-side liquidity from major exchanges returns; shorts or hedged positions may be appropriate for experienced traders. Long-term impact depends on whether capital re-enters; liquidity clusters above current price could anchor a recovery if market sentiment shifts, but continued perp outflows would sustain the bearish trend.