One metric I always check before entering a leveraged trade: funding rate.
If funding gets extremely positive, too many traders may be positioned long.
If it gets deeply negative, shorts may be overcrowded.
Funding doesn’t predict price; it simply tells you how crowded the trade is.
Sometimes, that’s the warning worth noticing.
Before shorting or LONGing BTC, ETH, BNB & XRP, check funding rate.
If funding gets extremely positive, too many traders may be positioned long.
If it gets deeply negative, shorts may be overcrowded.
Funding doesn’t predict price; it simply tells you how crowded the trade is.
Sometimes, that’s the warning worth noticing.
Before shorting or LONGing BTC, ETH, BNB & XRP, check funding rate.