Old dog glanced at the order book of $SQQQ . In the past 24 hours, it’s been down nearly 8%, with the current price at $34.3. While this drawdown isn’t small in the on-chain perpetual contract market, the more critical part is its funding rate: 0.00018089—still positive.
According to the funding-rate iron law, when the price falls and the funding rate is positive, that means longs are stubbornly holding up the decline and still paying the shorts—this is a classic case of longs trapped and adding to positions. Combined with the holding volume of 194,000 units, this figure hasn’t shown a large-scale liquidation-style drop, indicating these long positions haven’t conceded yet—maybe even still stubbornly refusing to break. This usually means the market hasn’t fully flushed out, and panic selling hasn’t surfaced; there may still be room for further squeeze downward. Looking at this single signal alone, the on-chain structure is relatively bearish.
So my take is very simple: this setup currently supports the shorts. In other words, the longs are holding their breath, waiting for a rebound, but the price action hasn’t given them the chance yet. If BTC next starts an independent upward move, it could siphon in liquidity and create extra pressure on shorts targeting a Nasdaq product like this. The next forced action will be from this batch of longs who are stubbornly holding—because their costs are continuing to accumulate.
What I’m doing right now is observing; I won’t be bottom-fishing.
Trading tag: #BinanceFutures #TradFi #USDⓈM #SQQQ #SQQQUSDT $SQQQ
According to the funding-rate iron law, when the price falls and the funding rate is positive, that means longs are stubbornly holding up the decline and still paying the shorts—this is a classic case of longs trapped and adding to positions. Combined with the holding volume of 194,000 units, this figure hasn’t shown a large-scale liquidation-style drop, indicating these long positions haven’t conceded yet—maybe even still stubbornly refusing to break. This usually means the market hasn’t fully flushed out, and panic selling hasn’t surfaced; there may still be room for further squeeze downward. Looking at this single signal alone, the on-chain structure is relatively bearish.
So my take is very simple: this setup currently supports the shorts. In other words, the longs are holding their breath, waiting for a rebound, but the price action hasn’t given them the chance yet. If BTC next starts an independent upward move, it could siphon in liquidity and create extra pressure on shorts targeting a Nasdaq product like this. The next forced action will be from this batch of longs who are stubbornly holding—because their costs are continuing to accumulate.
What I’m doing right now is observing; I won’t be bottom-fishing.
Trading tag: #BinanceFutures #TradFi #USDⓈM #SQQQ #SQQQUSDT $SQQQ