$SKDD has fallen 7.327% over the past 24 hours, closing at 6.83, but the funding rate is still pinned at 0.00063368. A wounded long is bleeding while still paying shorts — in a down market, that combination is usually not a sign of a bottom.
From my old-dog perspective, this is about M4_mover, meaning short-term abnormal movement. The core contradiction is this negative spiral: price is dropping hard, but the positive funding rate (longs paying shorts) means the longs on the market still haven’t admitted defeat, and may even be adding on the way down to lower their average cost. Open interest at 75922.77 by itself doesn’t tell us whether it’s heavy or light, but combined with falling price and positive funding, it points to long positions passively accumulating risk. The market logic is simple: when price falls and the funding rate stays positive, it means every 8 hours the people holding longs are losing blood, and that blood is being drained by shorts. If longs don’t cut their losses, shorts keep a steady source of profit, and the downside resistance stays weak. Without comparable coin data, I’m just watching
$SKDD itself: this structure of falling price plus positive funding is often a continuation pattern in a downtrend, not a reversal bottom.
My view is that this is not a simple pullback, but a correction after long-side crowding. The trigger is straightforward: if price keeps falling and funding remains positive, then forced liquidations being flushed out is only a matter of time. My move is to stay out. For those holding longs, 6.83 has already broken; the next unclear support depends on whether price can quickly reclaim and hold around 6.93 (near the open price, the intraday strength/weakness line), but I don’t see that yet. Shorts should also be cautious: if price suddenly gets pushed up and funding flips negative in an instant, that would be a contrarian signal of short crowding, but the current funding structure does not support that conclusion.
The strongest counterargument is that some may think a -7.327% drop is already deep enough to attract dip buyers. But funding does not support that view, because a true dip-buying setup should come with funding falling sharply or even turning negative, showing shorts actively covering. Right now, the funding rate shows longs are still desperately holding the line with capital. That kind of stubborn holding often triggers a more violent stop-loss chain.
If I’m wrong, the biggest invalidation would be
$SKDD quickly rebounding and holding above 6.93, while funding starts dropping rapidly. That would mean the longs held the line and shorts began to retreat, changing the entire supply-pressure structure.
Trading tag:
#BinanceFutures #TradFi #USDⓈM
#SKDD #SKDDUSDT $SKDD