The AI agent token SIREN continues to defy weakening on-chain fundamentals with another 11% gain. Its 90-day rally of approximately 2,450% is currently fueled by perpetual traders, despite a notable decline in token holders and a $490 million drop in market capitalization. Market data indicates this divergence introduces significant risk, as early signs of a bearish shift in sentiment emerge.
The AI agent token SIREN has extended its rally, adding 11% in the last 24 hours following a 90-day surge of approximately 2,450%. This dramatic performance continues despite underlying risks where market fundamentals do not align with the perpetual trading activity.
On-chain fundamentals have deteriorated, with the number of token holders declining after reaching an all-time high of 41,570. According to data tracked by CoinMarketCap, the network lost roughly 2,200 holders within about a week, falling to 39,390.
A decline in holders typically increases circulating supply and places downward pressure on price. SIREN‘s market capitalization has already dropped by $490 million, which under normal conditions would weigh on price action.
Analysis indicates the rally is largely fueled by perpetual traders increasing long positions. Over the past 24 hours, the cumulative Taker Buy/Sell Ratio across centralized exchanges remained above 1 at 1.05, indicating buy-side pressure dominates.
During the same timeframe, short traders recorded higher losses than long traders. CoinGlass liquidation data shows approximately $817,000 in short positions was liquidated, compared to about $319,000 in long liquidations.
Despite the ongoing rally, signs point to a possible trap forming for bullish perpetual traders. The Funding Rate has started to turn negative, standing at -0.0687% according to CoinGlass, indicating more traders were opening short positions.
If this trend persists, price could eventually respond to the growing bearish pressure. In that scenario, SIREN may reverse course and decline from current levels.
