The price of $0G has risen significantly over the past two days, with an increase of nearly 50%. This sharp rise has likely caught the attention of many retail investors, who are now leaning towards buying (going long) the asset. However, there’s a critical indicator to consider: the funding rate is nearing -2%, which suggests that the cost for traders to maintain long positions is becoming expensive. Typically, when the funding rate turns negative, it means there are more people holding long positions than short ones, and this imbalance can indicate that the market might be due for a reversal.
Looking at the current price action, it appears that the price has just hit a peak, and the 1-hour chart shows consistent declines. This suggests that the upward momentum may have already reached its limit, and the market could be primed for a downturn.
Given that most retail investors are still betting on further price increases while the funding rate is negative, it is likely that the big players (institutional traders or whales) have already built up large short positions. These big players are often able to drive the market in their favor, and the current conditions are setting up for a potential price drop.
In summary, now could be an ideal time to consider shorting the asset, as the market seems to be at a turning point, with signs of overextension and a potential reversal in price movement.
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