Jito's JTO token fell 9.7% this week even as spot buyers accumulated $24.7 million, a divergence that may be setting up a short squeeze.
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Jito drops 9.7% despite $24.7M spot buying as shorts build
Jito's JTO token fell 9.7% this week even as spot buyers accumulated $24.7 million, pushing netflow to $2.02 million, CoinGlass data shows.
The four-day accumulation streak, which peaked Aug. 25 when the token swung 15.13% between its session high and low, suggests investors are treating the decline as a discount entry rather than an exit, according to CoinGlass.
On-chain capital is expanding in parallel. Total value locked on Jito, a Solana liquid-staking and restaking protocol, has grown $243.81 million since Aug. 19 to roughly $1.017 billion, DefiLlama data shows. Protocol fees reached about $504,000, the highest since May 11.
The risk sits on the derivatives side. JTO's funding rate has dropped from 0.0143% to 0.0060%, a sign that short positions are building. If funding flips negative, the token faces further downside — but the spot accumulation could also squeeze over-leveraged bears.
Spot accumulation vs. price decline
The divergence between spot demand and price action has widened over the past week. CoinGlass recorded $24.72 million in total buying against $22.7 million in selling across exchanges over four days, leaving a net inflow of $2.02 million. The largest single accumulation came Aug. 25, the same day JTO fell 15.13% from its session high to low on TradingView.
Sustained accumulation during a price decline typically reflects investors betting the asset will outperform in the near term. The pattern mirrors broader Solana DeFi activity, where Jito competes with Marinade Finance and Sanctum for staked SOL deposits. Jito's TVL of $1.017 billion places it among the largest protocols on the network.
Funding rate flags short risk
The derivatives market tells a different story. JTO's funding rate fell from 0.0143% to 0.0060%, CoinGlass data shows, indicating more short positions are being opened relative to longs. A continued slide toward negative territory would signal that shorts dominate and could pressure the token further.
The setup leaves JTO at a crossroads. If spot buyers absorb the selling pressure, the accumulation could fuel a rebound that forces leveraged shorts to cover. If distribution outweighs demand, the downside extends. The funding rate, which updates every eight hours on major exchanges, will be the first signal of which path the market takes.
This article is for informational purposes only and does not constitute investment advice.
