The cryptocurrency market is witnessing divergent trends, with the memecoin SIREN experiencing a parabolic rally while Bitcoin undergoes a significant deleveraging phase. SIREN, after a prolonged period of consolidation, broke out dramatically, surging to a new all-time high of $0.36. Following this peak, it corrected to $0.26, still representing a staggering 174.2% gain on the daily chart and a 241% increase over the week.
The SIREN rally was fueled by explosive metrics: trading volume skyrocketed by 3294% to $42 million, and its market capitalization surpassed $200 million. On-chain data from Nansen reveals aggressive accumulation by whales over the last three days, with top holders adding a net 635 million SIREN tokens (700 million bought vs. 65 million sold). This bullish sentiment extended to derivatives, where Open Interest surged 402% to $51 million and derivatives volume exploded by 12,418% to $1.62 billion. The Long/Short Ratio on Binance climbed to 1.05, indicating dominant bullish positioning among top traders.
However, signs of profit-taking emerged. The Relative Strength Index (RSI) reached an overbought 88 before dipping to 86, and on-chain analytics firm OnchainSchool observed one holder offloading $2.6 million in SIREN tokens. Analysts suggest that sustained buyer demand could push SIREN back toward $0.30, but a panic in the futures market could trigger a sharp decline to $0.11.
Simultaneously, Bitcoin is entering a reset phase. On-chain data from Arkham shows the "Hyperunit" whale wallet, linked to trader Garrett Jin, sold over $340 million in Bitcoin, sending $341.8 million to Binance, signaling substantial selling pressure. This whale, who once held nearly $11.5 billion in BTC, has seen holdings drop to around $2.2 billion. The move follows a period of high-risk trading, including a $250 million liquidation of a leveraged Ethereum position on Hyperliquid on February 1st.
Despite attempts to rebuild positions worth nearly $750 million across ETH, SOL, and BTC in late January, the recent massive BTC sale indicates a strategic shift toward caution, liquidity preservation, and reduced short-term confidence. This sentiment is reflected in broader market metrics: Bitcoin's Open Interest (OI) has plunged from around $61 billion to near $49 billion, signaling widespread deleveraging as overextended traders exit. With BTC trading near $71,454.66, technical indicators like a weak MACD and RSI below neutral levels point to continued bearish pressure, suggesting the market is undergoing a necessary cleanup before a potential stabilization.
