NET 24-hour falls 6.548%, but the funding rate stays at 0.00000000. Price declines are usually accompanied by negative funding rates, where shorts pay longs. Now that it has returned to zero, it indicates a rare equilibrium between long and short forces at the current level—nobody is paying anyone.
This typically happens after a period of intense volatility, when disagreement between longs and shorts reaches an extreme. It dropped, but did not establish overwhelming short-side advantage. Longs take over the position but don’t push the rebound. This kind of balance is fragile; once funds flow heavily in one direction, it will be broken.
A deviation of the funding rate from 0 is the trigger.
Trading tag: #TradFi #链上美股 #NET
Where do you think this set of conclusions is most likely to be wrong?
This typically happens after a period of intense volatility, when disagreement between longs and shorts reaches an extreme. It dropped, but did not establish overwhelming short-side advantage. Longs take over the position but don’t push the rebound. This kind of balance is fragile; once funds flow heavily in one direction, it will be broken.
A deviation of the funding rate from 0 is the trigger.
Trading tag: #TradFi #链上美股 #NET
Where do you think this set of conclusions is most likely to be wrong?