$VELODROME Over the past 24 hours, it surged 26.686%, and the current price is 0.03888. However, behind this rally, support in the derivatives (futures/contracts) market is very thin.
Core view: This is a technical rebound lacking funding-fee support. The spot-driven push has not been followed by buy demand in the futures market. The upside is likely to retrace afterward.
The evidence chain lies in the clear divergence between price and the funding rate. The price has exploded, but the funding rate is only 0.00006360—close to zero, even requiring a slight subsidy (micro negative). This indicates that contract longs are not paying a premium to hold positions; the demand from leveraged longs is extremely low. Combined with open interest (OI) of 274005113, and estimating against the current price, the total position size is not “light” relative to its market cap. Low fees plus high open positions means the driving force is mainly from spot. Meanwhile, the huge derivatives positions look like a liquidity “bomb” waiting to be triggered.
Strong counter-evidence: If spot buying remains genuinely strong—able to directly pull the price above and keep it at high levels—then the low funding rate would become an advantage, reducing the cost for long positions, attracting futures longs to follow in. That would reverse the situation.
Second-order effect: Once spot buying weakens or the price starts to fall, declines will be very rapid because the derivatives market lacks long-side cost support. The long positions within the current OI will become an accelerant for the drop: any price decline directly erodes their principal rather than consuming funding fees, forcing them to trigger stop-losses or liquidations sooner, thereby amplifying the selloff.
Invalidation conditions: My thesis would be invalid if the price continuously holds above the key level of 0.03888, and the funding rate begins to rise in sync and significantly (e.g., to above 0.01%), accompanied by a synchronous increase in OI. This would show that leveraged longs are entering and are willing to pay the cost.
Action: Don’t chase. Wait. If the price cannot form effective support above 0.03888 and then starts to fall, you could consider shorting with a small position size. The safest approach is to wait for a pullback, then reassess long opportunities after OI has been “cleaned out.”
Trading tag:
#Crypto #合约交易 #VELODROMEUSDT #DeFi
Where do you think this thesis is most likely to be wrong?