It fell 2.284% in
$TEAM 24 hours, with the price pushed down to 187.79, but the funding rate is reported as -0.00000138. Old Dog took a quick look, and this combination is a bit interesting.
Price is falling, but funding is negative. According to the iron law of funding rates, a negative rate means shorts pay longs, which shows that short positions are crowded. While they are making money from the downside spread, they still have to pay rent to the other side of the trade; this kind of situation is hard to sustain. Either shorts will close positions at higher levels to lock in profits, or they will face the risk of being squeezed by a small rebound. Open interest is 329.16; I didn’t get the specific contract unit, but combined with the 24-hour trading volume of 145,000, market liquidity is not bad, and the channel for shorts to retreat is open.
To put it simply, I judge the probability of a short-term rebound is rising. The trigger conditions are clear: if the price can climb back above 190, and the funding rate starts to flatten or turn positive, I will take a small long position, with a stop loss set below 185. Everyone says the downtrend is not over, but I disagree, because the grinding decline under negative funding is consuming the shorts’ ammunition, and the opposite is often wrong.
The most likely way this call could be wrong is: the price drops straight through 187.79 with increased volume while the funding rate stays completely unchanged, meaning the shorts’ control is far stronger than expected. At that point, I would revoke the judgment and honestly stay on the sidelines.
Trading tags:
#BinanceFutures #TradFi #USDⓈM
#TEAM #TEAMUSDT $TEAM