Sentient (SENT) surged more than 60% while the broader cryptocurrency market declined nearly 5%, though the token also demonstrated significant volatility with an 18% pullback after reaching $0.044 before recovering again.
What Happened: Token Defies Trend
The rally appears driven by three technical factors tracked across multiple analytics platforms.
Data from shows Sentient maintained a −0.92 correlation with Bitcoin (BTC) over recent days. A negative correlation close to −1 indicates two assets typically move in opposite directions, meaning traders seeking alternatives to BTC weakness found opportunity in SENT.
The Money Flow Index, which tracks buying and selling pressure using price and volume, showed a bearish divergence between Jan. 29 and Jan. 30 when the token made a higher high while MFI made a lower high. That pattern explains the 18% drop from peak levels.
But MFI did not collapse. It remains above levels recorded on Jan. 28 and holds above an ascending trendline, suggesting dip buyers remain active.
Exchange data supports continued accumulation. On Jan. 30 alone, Sentient recorded over $4 million in exchange outflows even before the trading day concluded. Tokens leaving exchanges rather than entering typically signals buying interest rather than selling pressure.
Also Read: Why Central Banks Are Stockpiling Gold Instead Of U.S. Debt For First Time Since 1996
Why It Matters: Leverage Risk Builds
Derivatives positioning reveals the fragility beneath the rally.
Bybit data shows long leverage near $7.96 million against short leverage of approximately $1.15 million. Longs outweigh shorts by nearly seven times.
When leverage skews this heavily toward one direction, small price drops can trigger forced liquidations, potentially accelerating losses. The Relative Strength Index showed another bearish divergence between Jan. 29 and Jan. 30, with price making a higher high while RSI made a lower high.
For the rally to remain healthy, RSI needs to push above its prior peak near 70. A clean 4-hour close above $0.039 would signal renewed strength, while failure there puts $0.036 as first support.
A move toward $0.036 would likely trigger long liquidations given current leverage imbalance, potentially exposing lower levels at $0.031 or $0.022 if Bitcoin strengthens and the negative correlation continues working against Sentient.
Read Next: SEC, CFTC Launch Joint Crypto Initiative To Align U.S. Oversight And Bring Digital Asset Markets Onshore
