Illuvium (ILV), the native token of the Illuvium ecosystem, has experienced a remarkable surge in value over the past month, prompting Binance, one of the world’s leading cryptocurrency exchanges, to list ILV perpetual futures contracts. The move allows traders to take both long and short positions on ILV, reflecting the growing interest and liquidity in this cryptocurrency.
In the last 30 days, ILV’s value has surged by an impressive 126%, as reported by CoinMarketCap. This significant price appreciation has thrust ILV into the spotlight among altcoins. ILV is an integral part of the Illuvium ecosystem, a fantasy battle game that operates on the Ethereum (ETH) blockchain. While ILV was already listed on Binance, the exchange had previously offered spot trading only for the cryptocurrency.
Binance’s decision to list ILV perps
In response to the increasing demand and trading activity surrounding ILV, Binance has made the strategic decision to list ILV perpetual futures contracts. This move marks a significant development for ILV, as traders can now choose to either long or short the token based on their market sentiment and trading strategies.
Shortly after the listing of ILV perpetual futures contracts, an ILV holder made a substantial deposit of the token, amounting to $916,000. The specific reasons behind this sizable deposit remain undisclosed at this time. However, speculation suggests that the investor may be looking to take a long position on ILV, indicating a strong bullish sentiment within the market.
ILV has defied market expectations by adding another 5% to its value. Data from the derivatives information portal Coinglass reveals that the Open Interest for ILV has experienced a remarkable surge. Open Interest is a crucial metric that measures the number of futures contracts open during a trading period. A significant increase in Open Interest, as observed in the case of ILV, indicates a substantial influx of liquidity into contracts linked to the token.
Traders favour long positions
Despite conventional expectations of a cooling-off period following a cryptocurrency’s substantial price rally, ILV traders seem undeterred by the norm. The ILV long/short ratio currently stands at 1.17, indicating that there are more bullish positions than bearish ones. This bullish sentiment is further corroborated by the distribution of long and short positions, which stands at 54.15% long positions to 45.85% short positions at the time of writing.
Considering the surge in Open Interest and the ongoing upward momentum in ILV’s price, there is a possibility that ILV may continue its ascent before a retracement occurs. The token may potentially retest the $100 mark if current market conditions and sentiment persist. This optimistic outlook is a testament to the growing interest and confidence in ILV among traders and investors.
