Siren price rallies over 125% to $2.34, is a reversal coming?

Siren price shot up 127% to $2.34 on Monday morning, becoming the best-performing crypto asset of the day.

According to data from CoinGecko, Siren (SIREN) price soared to an intraday high of $2.34 on Monday morning before stabilizing at $2.19 at the time of writing. Its market cap stood at $1.56 billion, making it the 50th largest crypto asset in the market.

While there was no particular news on development or ecosystem updates to account for SIREN’s rally today, it was likely linked with significant demand for the token in the futures market.

Notably, data from Coinglass show that SIREN futures open interest surged nearly 120% to $121 million over the past 24 hours. At the same time, the long/short ratio sat at over 1, a sign that more traders were going in with a bullish outlook.

While such rallies often spark excitement, it should be noted that they often face a deep retracement as investors rush to book in profits.

For instance, Siren previously rallied to an all-time high of $3.61 on March 22 after climbing up for several straight days owing to its rebrand into an autonomous AI agent on the BNB Chain and a successive perpetuals listing on multiple major crypto exchanges like Binance, Bybit, and MEXC. However, it came crashing down by over 70% from its peak after concerns about its supply concentration gained traction.

As reported by crypto.news earlier, on-chain data compiled by Bubblemaps revealed that nearly 50% of SIREN’s supply was held in one cluster. Subsequently, later reports revealed that the concentration could be as high as 88% of the total supply.

While the token has regained some momentum as seen by today’s surge, the token could be at risk of a reversal again should those large holders decide to sell off their positions.