The old dog took a quick look at HOOD's contracts over the last 24 hours, which shot up by 8.056% to 87.86. The volume spiked to 20.91 million units, and the open interest is hanging around 48,325 contracts. Interestingly, the funding rate has remained steady at 0, indicating there's no typical FOMO from traders piling into long positions. This isn’t a spike caused by a leverage squeeze; the chips are being pushed without much frenzy, and the market looks relatively clean.
The zero funding rate means that the bulls haven’t had to pay the bears a dime in interest, and both sides are at a complete standoff. Even with an 8-point rise, no one is rushing to open long positions for funding rate premiums. From the old dog’s experience, this kind of structure is often more resilient than a rapid jump driven by a full funding rate. The worst-case scenario would be if the price rises, and the funding rate spikes too, leading to a chain explosion of long positions when it reverses; fortunately, this script hasn’t played out yet. The volume of 20.91 million compared to the open interest suggests healthy turnover without significant signs of a market maker unloading.
Last time HOOD experienced a similar no-funding rate uptrend was early this year, and after about two weeks, it saw a small acceleration without trapping anyone.
The old dog’s plan is to keep an eye on the 84 level. If the price retraces and holds above 84, I’ll maintain a slightly bullish observation with a lighter position, not risking it all; but if it breaks below 84 and open interest suddenly collapses, then I’ll exit to play it safe and won’t hold on anymore.
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#BinanceFutures #TradFi #USDⓈM
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