Itโs up 9.74% in the past 24 hours. The current price of
$NET is 313.77โand this isnโt finished yet. The key data is here: funding rate -0.00054360.
The shorts are paying while the price keeps rising. This is the most classic short-squeeze structure: long positions โfree-rideโ on the interest the shorts are paying, pushing the price higher. The shorts are bleeding twiceโlosing on price and losing on funding rate.
The open interest is 1360.44. It canโt be directly converted into how much USD that represents, but considering the $2.32 million trading volume, liquidity doesnโt look thin. This squeeze may still have room to run.
The market generally thinks the tech stock rebound has already peaked, but I donโt believe it. Shorts are currently the ones getting roasted. If the price moves up even another 5 points, that batch of shorts carrying negative funding rates will have liquidation orders triggered in sequenceโturning into fresh fuel. This isnโt a fundamental story; itโs purely a funding/positioning battle.
My order is already placed. Going long
$NET /USDT with 5x leverage, stop loss at 312, take profit at 325, position size 10%. If the price drops below 313.77โthis current levelโIโll admit Iโm wrong. That means the squeeze failed and the longs are lacking strength. If it pushes up toward 325, Iโll consider cutting the position in half, keeping the other half to play a more extreme short-squeeze scenario.
Whatโs the strongest counter-evidence? Itโs that the broader tech sector is weak overall, and
$NET canโt stand on its own. If the U.S. stock market turns down, all these high-beta names will get dragged lower too. The protection โshellโ of negative funding wonโt holdโonce itโs punctured, it breaks.
The invalidation conditions are clear: if two consecutive 4-hour candles close below 313.77, my logic fails. Iโll close the position immediately without hesitation.
Second-order impact: the shorts are currently paying their costs. If price holds up, over the next few days youโll likely see shorts being forced to close, and buying pressure will get even stronger. But the other way around: if price gets pushed back down here, longs will quickly take profits, and the price could fall faster than it rose. This isnโt a mild consolidation patternโitโs the prelude to a stampede.
Aggressive approach: open long at the current price, donโt set a stop loss, and bet on a chain reaction liquidation cascade.
Defensive approach: wait for a pullback near 313.77 to enter, with a tighter stop loss.
Avoidance approach: donโt touch itโwait until the funding rate turns positive. Entering now is catching a flying knife in midair.
When shorts are squeezed into negative funding but the price is still rising, that usually isnโt the topโitโs the middle stage of the move. Everyone is waiting for a pullback, but Iโm betting it wonโt come.
Trading tag:
#TradFi #้พไธ็พ่ก #NET
Where do you think this set of judgment calls is most likely to be wrong?