$HOOD fell 4.2% over the past 24 hours, quoted at 120.14. In the same period, the funding rate remains positive at 0.00004002, meaning long positions are still paying fees to short positions. Open interest is 145,025.24, with trading volume of about 48.8 million.
A price drop coexisting with a positive funding rate is a typical signal of longs being trapped. As prices fall, longs pay their holding costs and try to add more to average down, but shorts are not forced out despite the positive funding rate. This suggests the current decline is not panic-driven by shorts, but a slow bleed after long confidence starts to weaken. As long as open interest does not drop sharply, this drifting-down pattern may continue.
The strongest counter-evidence would be sudden macro-level or company-level positive news, which could instantly flip the funding rate direction and boost long positions. If the
$HOOD price rebounds strongly above 125 and the funding rate turns negative, the current bearish logic would fail.
I choose to stay on the sidelines. Iโll wait for two clear signals: first, open interest drops significantly, indicating longs are starting to give up and close; second, the price around 120 fails to find support and starts a new leg lower. Until then, I wonโt chase the rebound.
Aggressive: If there is high-volume resistance between 118 and 120, you can cautiously enter longs with a small position, with a stop-loss below 116.
Conservative: Donโt touch it unless open interest and price show no divergence.
Trading tag:
#TradFi #้พไธ็พ่ก #HOOD
Where do you think this set of judgment is most likely to be wrong?