Kamino Finance [KMNO] started the week on a positive note, as the altcoin gradually picked up pace with a 15% gain.
However, the rally reached a critical point, with liquidation clusters on either side of the price leaving room for further volatility.
The Liquidation Heatmap showed clusters above the current price, which could become targets if the rally continued. Clusters below also left the altcoin vulnerable to a reversal.
For now, KMNO’s momentum over the preceding trading hours suggested room for further gains. But were the supporting signals strong enough to keep buyers in control?
Kamino’s Total Value Locked (TVL) rose by $21 million over the past day, offering an encouraging backdrop to KMNO’s rally.
According to DeFiLlama, TVL stood at $1.383 billion at the time of writing. If fresh deposits drove that increase, it could suggest greater confidence in the protocol.
However, TVL can also rise as deposited tokens appreciate. The increase alone could not establish fresh capital inflows or stronger demand for KMNO.
Meanwhile, Open Interest increased alongside a shift in Funding Rates over the same period. The OI-Weighted Funding Rate moved from -0.0044% to a slightly positive 0.0008%.
This metric weights Funding Rates by Open Interest. Its move above zero indicated that longs were paying shorts, suggesting a modest bullish positioning bias.
The shift supported the recovery narrative, although the positive reading remained small. Bulls had gained some ground, but the signal offered limited assurance about the rally’s staying power.
In the Spot market, KMNO’s Netflows turned negative following positive readings of roughly $93,000 in previous days.
On the 14th of October, Spot Netflows reached approximately -$47,000, indicating that outflows exceeded inflows across tracked exchanges. The accompanying $749,000 inflow figure represented tokens moving onto exchanges, rather than confirmed purchases.
Earlier signs of withdrawals appeared on the 12th of October, when Spot Netflows reached -$193,600. These withdrawals could be consistent with accumulation, although exchange transfers alone cannot confirm purchases or investors’ intentions.
Meanwhile, Perpetual Inflows of Kamino Finance [KMNO] reached roughly $7.36 million, with positive Netflows of $233,490, according to CoinGlass.
That suggested more capital entered tracked perpetual venues than left. However, those funds could support either long or short positions.
Overall, improving momentum and slightly positive Funding Rates left room for further upside. Liquidation clusters below the price remained a risk if buying momentum weakened.