๐ Important info about the Funding Rate
When the Funding Rate is negative while the coin keeps climbing, it's a signal worth paying close attention to. ๐
Even if the coin has made massive gains exceeding 1000%, jumping into a short position might be a high-risk move. The reason is that a negative Funding Rate often reflects that the majority of traders are still betting on a downturn, while the price continues to rise due to buyer strength and liquidity supporting the bullish trend.
๐ Continued upward movement despite the negative Funding Rate indicates strong buying momentum, increasing the likelihood of a Short Squeeze that pushes the price to higher levels and leads to the liquidation of many short positions.
โ ๏ธ So, donโt just rely on past price increases when making a sell decision; keep an eye on derivative data, particularly the Funding Rate.
๐ Conversely, when the Funding Rate is excessively positive with signs of weakness in the price, the risks for long holders might be greater.$LAB
#lab1usdt
When the Funding Rate is negative while the coin keeps climbing, it's a signal worth paying close attention to. ๐
Even if the coin has made massive gains exceeding 1000%, jumping into a short position might be a high-risk move. The reason is that a negative Funding Rate often reflects that the majority of traders are still betting on a downturn, while the price continues to rise due to buyer strength and liquidity supporting the bullish trend.
๐ Continued upward movement despite the negative Funding Rate indicates strong buying momentum, increasing the likelihood of a Short Squeeze that pushes the price to higher levels and leads to the liquidation of many short positions.
โ ๏ธ So, donโt just rely on past price increases when making a sell decision; keep an eye on derivative data, particularly the Funding Rate.
๐ Conversely, when the Funding Rate is excessively positive with signs of weakness in the price, the risks for long holders might be greater.$LAB
#lab1usdt