NBIS current price is 196.5, down 4.57% over the past 24 hours. Meanwhile, its funding rate is positive at 0.00014474.
This setup is a structure where longs are holding while paying funding. The price is falling, but the longs are still paying to maintain their positions. That suggests that during the downturn, some capital is adding against the trend to catch falling knives, or there’s simply too much trapped capital to be willing to leave. This isn’t shorts squeezing longs—it's longs propping themselves up over the fire. Even if the funding rate is low, as it accumulates, the long position’s cost basis will make rebounds harder: every time the price rises, it will face selling pressure from long breakout/exit (de-risking) orders.
If the price continues to grind lower, this batch of longs paying funding will gradually be unable to hold. They may shift from actively adding to being forced into stop-outs, creating a downward negative spiral. Open interest is 106745.05, which translates to about $21 million. The scale is not large, liquidity is average; if there’s a concentrated liquidation, it can easily amplify volatility.
I’ve flipped and opened a short. Direction: short; Leverage: 20x; Stop-loss: 201.0; Take-profit: 188.0; Position size: 50%. My judgment is based on the continued divergence between price and the funding rate. If the stock price can strongly reclaim the 200 integer level with volume, I’ll admit defeat and exit this trade.
Trading tag: #TradFi #链上美股 #NBIS
Where do you think this line of judgment is most likely to be wrong?
This setup is a structure where longs are holding while paying funding. The price is falling, but the longs are still paying to maintain their positions. That suggests that during the downturn, some capital is adding against the trend to catch falling knives, or there’s simply too much trapped capital to be willing to leave. This isn’t shorts squeezing longs—it's longs propping themselves up over the fire. Even if the funding rate is low, as it accumulates, the long position’s cost basis will make rebounds harder: every time the price rises, it will face selling pressure from long breakout/exit (de-risking) orders.
If the price continues to grind lower, this batch of longs paying funding will gradually be unable to hold. They may shift from actively adding to being forced into stop-outs, creating a downward negative spiral. Open interest is 106745.05, which translates to about $21 million. The scale is not large, liquidity is average; if there’s a concentrated liquidation, it can easily amplify volatility.
I’ve flipped and opened a short. Direction: short; Leverage: 20x; Stop-loss: 201.0; Take-profit: 188.0; Position size: 50%. My judgment is based on the continued divergence between price and the funding rate. If the stock price can strongly reclaim the 200 integer level with volume, I’ll admit defeat and exit this trade.
Trading tag: #TradFi #链上美股 #NBIS
Where do you think this line of judgment is most likely to be wrong?