KAITO drops 32.8% in a week as selling volume dominates

KAITO fell 32.8% over the past seven days to erase most of its quarterly gains, as selling volume overtook buying across perpetual and spot markets.

The Long/Short Ratio on perpetual markets plunged to 0.46, CoinGlass data shows, with Binance and OKX traders driving the selling pressure.

Long traders lost roughly $748,000 over the period, about nine times the $84,000 shorts gave up, while perpetual net flow turned negative at -$10.99 million and funding flipped to -0.1743%.

Spot net flow turned positive at $273,000 in 24 hours, meaning more tokens moved onto exchanges to be sold, and with $34 million pulled from perpetuals in a week, KAITO carries more downside risk than recovery prospects.

Longs bear the brunt of the sell-off

The decline has nearly wiped out the token's three-month run, which had clipped a 35.22% gain over the past 90 days. The steepest leg came in the last 24 hours, when KAITO fell roughly 18.7%.

A Long/Short Ratio reading below 1 means more selling than buying moves through the market, and the farther it sits from 1, the deeper the selling runs. At 0.46, the reading points to sustained bearish pressure from Binance and OKX traders.

The imbalance shows up in trader losses. Longs gave up about $748,000 over the period, roughly nine times the $84,000 shorts lost across the same window, raising the odds the decline extends and keeps working against leveraged buyers.

Capital drains from perpetuals and spot

Perpetual market capital has contracted sharply as outflows outweigh inflows. CoinGlass recorded a negative net flow of -$10.99 million into KAITO, and a heavy sell-off has pulled roughly $34 million out over the past seven days. Shrinking capital at this scale points to panic selling.

The Funding Rate turned negative alongside it, dropping to -0.1743%, the first stretch of negative funding since Dec. 27, when the reading fell to -1.038%. An extremely negative funding rate signals most perpetual capital now leans short.

The spot market offers no support either. Spot net flow turned positive, with $273,000 offloaded in 24 hours as traders locked in profit or cut losses. The pattern holds across a wider window, with losses reaching $2.63 million over seven days and $16.01 million over 15 days, close to a daily average of just over $1 million.

With capital draining from both markets and funding deeply negative, KAITO faces a higher risk of a deeper decline than a recovery. The token's next move hinges on whether spot buyers step in to absorb the selling pressure, or leveraged longs face another round of forced liquidations.

This article is for informational purposes only and does not constitute investment advice.