SKR has plummeted 37.375% within the past 24 hours, and its current price is 0.019465. This price movement is accompanied by a deeply negative funding rate of -0.00119502, with open contracts reaching 606955572. These figures point to a core fact: the token is undergoing a structural drop driven by leveraged liquidations.
My key judgment is: SKR is in a systemic risk of mass liquidation, with short-side forces dominating the market, and the negative funding rate intensifying the persistence of downside pressure.
The evidence chain is based on two dimensions. First is the price dimension: a 37.375% decline in 24 hours indicates the market has seen selloffs at any cost, which is typically directly related to the forced liquidation of leveraged long positions. Second is the funding rate dimension: a deeply negative value of -0.00119502 means that holders of short positions must pay fees to long positions. Against the backdrop of the price crash, this abnormal negative funding rate does not indicate that shorts are taking profits; instead, it reveals that the short positions are extremely crowded. Shorts are still actively holding and even adding to positions, but they are paying high costs for it. Open contracts staying at a high level of 606955572, combined with the price crash and abnormal funding rate, allows for a high-probability scenario: a large amount of highly leveraged long positions has accumulated in the market and is currently being liquidated in a continuous wave; meanwhile, short positions are overweight, and the funding they pay may, in the future, become a burden that forces them to close.
The strongest counter-evidence is: the deeply negative funding rate may itself be an inverse indicator. It suggests shorts are excessively concentrated; once the price sees any small rebound, or market sentiment shifts even slightly, shorts may be forced to collectively close to avoid continuously paying funding fees or losses caused by a price recovery. This short-covering behavior would itself create massive buy pressure, pushing the price to rebound quickly and thereby reversing the current downtrend. Additionally, if the selling pressure comes mainly from spot rather than futures, then the chain-reaction effect of leveraged liquidations may be exaggerated.
The second-order impact will transmit along the leverage chain. Currently, longs bear the first costs of liquidation, and their forced liquidation orders provide the market with ongoing liquidity-driven sell pressure. Shorts may be profitable in the short term, but the continuing negative funding rate is eroding the cost of their positions. If the decline stalls or rebounds, shorts will become the next group forced to rebalance, which could trigger a V-shaped reversal in price.
My key judgment is: SKR is in a systemic risk of mass liquidation, with short-side forces dominating the market, and the negative funding rate intensifying the persistence of downside pressure.
The evidence chain is based on two dimensions. First is the price dimension: a 37.375% decline in 24 hours indicates the market has seen selloffs at any cost, which is typically directly related to the forced liquidation of leveraged long positions. Second is the funding rate dimension: a deeply negative value of -0.00119502 means that holders of short positions must pay fees to long positions. Against the backdrop of the price crash, this abnormal negative funding rate does not indicate that shorts are taking profits; instead, it reveals that the short positions are extremely crowded. Shorts are still actively holding and even adding to positions, but they are paying high costs for it. Open contracts staying at a high level of 606955572, combined with the price crash and abnormal funding rate, allows for a high-probability scenario: a large amount of highly leveraged long positions has accumulated in the market and is currently being liquidated in a continuous wave; meanwhile, short positions are overweight, and the funding they pay may, in the future, become a burden that forces them to close.
The strongest counter-evidence is: the deeply negative funding rate may itself be an inverse indicator. It suggests shorts are excessively concentrated; once the price sees any small rebound, or market sentiment shifts even slightly, shorts may be forced to collectively close to avoid continuously paying funding fees or losses caused by a price recovery. This short-covering behavior would itself create massive buy pressure, pushing the price to rebound quickly and thereby reversing the current downtrend. Additionally, if the selling pressure comes mainly from spot rather than futures, then the chain-reaction effect of leveraged liquidations may be exaggerated.
The second-order impact will transmit along the leverage chain. Currently, longs bear the first costs of liquidation, and their forced liquidation orders provide the market with ongoing liquidity-driven sell pressure. Shorts may be profitable in the short term, but the continuing negative funding rate is eroding the cost of their positions. If the decline stalls or rebounds, shorts will become the next group forced to rebalance, which could trigger a V-shaped reversal in price.