The old dog swept over the order book for $SKUU ; over the last 24 hours it fell 7.884%, not insignificant. But what’s more eye-catching is the funding rate: -0.00156343. A drop in price combined with a negative funding rate usually means the shorts are crowded out at the front—they have to pay the longs, and time is on the other side.
From the perspective of M4_mover, this set of data points to a classic setup: price is moving down, but the shorts are already crowded enough to start paying a price. A negative funding rate is the cost for short positions. When that cost rises to a certain level, some shorts will choose to take profits (closing shorts by buying back). That can actually provide short-term support to price. Current OI (open interest) is 25,838.11—not small. If the shorts’ closing actions become concentrated, it can amplify the rebound.
There’s no secondary-market benchmark here, so I can only say that $SKUU ’s order book shows this kind of cost-and-benefit tug-of-war between longs and shorts.
My view is that shorting from the current position is no longer worthwhile. The shorts are crowded, and the negative funding rate is eroding their profits. After an impulsive sell-off, a sudden dead-cat bounce could happen at any moment. If price can stabilize around the current level, or even rebound, that would be the shorts’ closing buy pressure kicking in. My action is to observe—I won’t chase shorts.
Trading tag: #BinanceFutures #TradFi #USDⓈM #SKUU #SKUUUSDT $SKUU
From the perspective of M4_mover, this set of data points to a classic setup: price is moving down, but the shorts are already crowded enough to start paying a price. A negative funding rate is the cost for short positions. When that cost rises to a certain level, some shorts will choose to take profits (closing shorts by buying back). That can actually provide short-term support to price. Current OI (open interest) is 25,838.11—not small. If the shorts’ closing actions become concentrated, it can amplify the rebound.
There’s no secondary-market benchmark here, so I can only say that $SKUU ’s order book shows this kind of cost-and-benefit tug-of-war between longs and shorts.
My view is that shorting from the current position is no longer worthwhile. The shorts are crowded, and the negative funding rate is eroding their profits. After an impulsive sell-off, a sudden dead-cat bounce could happen at any moment. If price can stabilize around the current level, or even rebound, that would be the shorts’ closing buy pressure kicking in. My action is to observe—I won’t chase shorts.
Trading tag: #BinanceFutures #TradFi #USDⓈM #SKUU #SKUUUSDT $SKUU