$SNDK In the past 24 hours, it’s down 3.3%, but the funding rate is still above 0.00018. Right now, longs are seeing prices drop while also paying shorts. This combination of a drop plus a positive funding rate suggests there are trapped longs hard holding on, and they may even be forced into adding positions passively. The risk of liquidation is building.
The mechanism is simple: as price moves down, longs’ cost basis rises (because they’re paying the funding fee). As soon as there’s a weak rebound, stop-loss orders and liquidation orders can easily trigger in a chain. I checked the open interest—it’s close to 200,000 contracts, so the size isn’t small. Once liquidity becomes an issue, the selling pressure could be extremely strong.
I’m planning to short in line with this trend: short the direction with 5x leverage. I’ll set the stop-loss at 1580 and take profit around 1480. Position size is 10% to test the waters. If price can reclaim and hold above 1580, this thesis becomes invalid—I’ll admit I’m wrong and exit.
Trading tag: #TradFi #链上美股 #SNDK
Where do you think this judgment is most likely to be wrong?
The mechanism is simple: as price moves down, longs’ cost basis rises (because they’re paying the funding fee). As soon as there’s a weak rebound, stop-loss orders and liquidation orders can easily trigger in a chain. I checked the open interest—it’s close to 200,000 contracts, so the size isn’t small. Once liquidity becomes an issue, the selling pressure could be extremely strong.
I’m planning to short in line with this trend: short the direction with 5x leverage. I’ll set the stop-loss at 1580 and take profit around 1480. Position size is 10% to test the waters. If price can reclaim and hold above 1580, this thesis becomes invalid—I’ll admit I’m wrong and exit.
Trading tag: #TradFi #链上美股 #SNDK
Where do you think this judgment is most likely to be wrong?