Binance's Long/Short Ratio Returns to Neutral Zone, Signaling Bullish Shift

CryptoQuant analyst DarkFost reported that according to Binance's on-chain long/short ratio, Binance longs seem to be returning to the derivatives market. The on-chain long/short ratio reflects the dominance of longs and shorts in trading volume. When the ratio is above 1, it indicates that buyers (longs) are dominant. Conversely, when the ratio falls below 1, sellers (shorts) are dominant.

Since the beginning of 2025, Binance's 30-day Exponential Moving Average (EMA) ratio has been below 1, indicating sustained bearish pressure. However, as of April 16, 2025, this ratio has recovered to the neutral zone. Additionally, over the past few days, the ratio has been mostly positive, indicating that the bullish sentiment in the Binance derivatives market is once again gaining momentum.

This shift in the long/short ratio suggests a warming bullish sentiment among market participants. The return to the neutral zone and the recent positive ratios indicate that buyers are becoming more active, potentially signaling a change in market dynamics. This development could be seen as a positive sign for the derivatives market, as it reflects a growing confidence among traders.

The neutral zone in the long/short ratio implies a balance between buying and selling pressures. This balance is crucial as it often precedes significant market movements. The recent trend of positive ratios further supports the idea that the market is moving towards a more bullish outlook. Traders and analysts will be closely monitoring these developments to gauge the future direction of the market.

Overall, the return of the long/short ratio to the neutral zone on Binance's derivatives market is a notable development. It indicates a shift in market sentiment from bearish to bullish, with buyers becoming more active. This trend, if sustained, could lead to further bullish movements in the market, providing opportunities for traders and investors alike.