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.