Bittensor (TAO) perpetual futures fell to around the $257 range, yet major traders continue to maintain a high proportion of long (buy) positions. With the price decline and long dominance occurring simultaneously, whether these positions will be unwound has emerged as a key market concern.

■ Down 5.36% intraday…24-hour low of $252.46

On the 23rd, Bittensor traded at approximately $257.20 on the TAOUSDT perpetual futures market, down 5.36% since 00:00 UTC. The 24-hour high was recorded at $273.65 and the low at $252.46. These figures are based on the most recent one-hour candle closes and may differ from real-time trade prices.

■ Long position dominance…78.14% by top traders' position value

Buy positions dominated the futures market.

· Long ratio across all accounts: 56.14% · Long ratio by top traders' account count: 64.46% · Long ratio by top traders' position value: 78.14%

Buy-side positions were dominant not only in account count but also in position size. However, these ratios merely reflect position distribution based on the data scope and methodology. A high long position ratio alone cannot be taken as evidence of expected future price gains or strengthening actual buying pressure.

■ Open interest edges down…funding rate turns negative

Open interest declined 0.1% over the past hour, with dollar-denominated nominal open interest also down 0.66%. The overall exposure of existing futures positions shrank slightly. The decline in open interest means the size of contracts remaining in the market has decreased, but these figures alone make it difficult to determine whether unwinding was concentrated on the long or short side.

The funding rate was recorded at minus 0.0104% at the latest settlement, with the next settlement estimate at minus 0.0084%. When the funding rate is negative, short position holders generally pay fees to long position holders. This shows that even with a high long ratio across accounts, the funding rate does not necessarily turn positive. The cumulative funding rate over the past three days was plus 0.0331%. While short-term funding has turned negative, the three-day cumulative figure remains positive.

■ Technicals also weak…one-hour moving averages in a bearish alignment

Technical indicators also pointed to weakness. One-hour moving averages are aligned in a downward direction. However, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) were not available in this analysis, making it difficult to further assess oversold conditions or momentum shifts.

■ Key points to watch

The current characteristic of the TAO futures market is that major traders' long position ratio remains high despite the price decline. If selling pressure persists, the unwinding of buy positions could act as an additional factor for price volatility. Conversely, the decline in open interest and negative funding rate alone cannot confirm further downside. To gauge actual price direction, trading volume, open interest changes, and liquidation sizes must be examined together.

Going forward, the market should watch price movements near the 24-hour low of $252.46, along with changes in open interest and the funding rate. In particular, if the price falls further while long positions remain elevated, whether unwinding pressure expands will be a key observation point.

[This article is intended to provide information for investment reference purposes and does not recommend the purchase or sale of any specific asset. Conditions may vary depending on market circumstances. Investment decisions and their consequences are the responsibility of the investor. AI provided partial assistance.]