$USELESS price surged 67.682% in the past 24 hours to $0.24495, while the funding rate over the same period was as low as 0.00005000 and open interest reached 145792711.
From a Trump-related perspective, this rally was mainly driven by a short squeeze rather than sustained buying. The low funding rate suggests insufficient upward momentum, so the risk of a pullback remains high.
The evidence chain is based on two dimensions: price change and funding rate. The price rose 67.682% in 24 hours, and combined with open interest (OI) of 145792711 (assuming contract count), this indicates concentrated positioning. Large price swings can easily trigger a chain reaction of short liquidations. The funding rate is only 0.00005000, far below common levels (such as 0.01%), which usually means shorts are paying very little cost and there is a lack of intense squeezing. When short-term sentiment shocks are triggered by Trump-related events (such as policy remarks), this low rate may indicate that shorts are not being forced to close quickly, or that overall market participation is insufficient. Single-signal judgment: based solely on the abnormally low funding rate, the rally lacks funding support and is prone to reversing.
The strongest counterargument is that the price increase may come from genuine demand, for example Trump policy expectations attracting new capital, driving OI higher and lifting prices, while the low funding rate is only due to temporarily low volatility and does not reflect weak shorts. If demand continues, OI growth may be accompanied by a rebound in funding rates, forming a healthy cycle.
Second-order effects: if the price keeps rising, shorts will be forced to cover, pushing the price to a short-term peak. However, the low funding rate (0.00005000) will attract arbitrageurs to sell spot and buy contracts, increasing market selling pressure and forcing early longs to take profits. Ultimately, the cost is borne by late buyers, and liquidity may shift to other assets with higher funding rates.
Invalidation conditions: this view becomes invalid if the price stays above 0.24495 and the funding rate rises to 0.0001 or above, indicating stronger buying or higher shorting costs, which changes the squeeze logic; or if OI drops sharply, showing dispersion of positions.
Action: do nothing and wait for a clear signal. Trigger conditions: if the funding rate rises to 0.0001 or above, a small long position can be attempted with a stop loss below 0.24495; if the price falls below 0.24495, avoid it entirely. In the current environment, chasing the move carries more risk than reward.
From a Trump-related perspective, this rally was mainly driven by a short squeeze rather than sustained buying. The low funding rate suggests insufficient upward momentum, so the risk of a pullback remains high.
The evidence chain is based on two dimensions: price change and funding rate. The price rose 67.682% in 24 hours, and combined with open interest (OI) of 145792711 (assuming contract count), this indicates concentrated positioning. Large price swings can easily trigger a chain reaction of short liquidations. The funding rate is only 0.00005000, far below common levels (such as 0.01%), which usually means shorts are paying very little cost and there is a lack of intense squeezing. When short-term sentiment shocks are triggered by Trump-related events (such as policy remarks), this low rate may indicate that shorts are not being forced to close quickly, or that overall market participation is insufficient. Single-signal judgment: based solely on the abnormally low funding rate, the rally lacks funding support and is prone to reversing.
The strongest counterargument is that the price increase may come from genuine demand, for example Trump policy expectations attracting new capital, driving OI higher and lifting prices, while the low funding rate is only due to temporarily low volatility and does not reflect weak shorts. If demand continues, OI growth may be accompanied by a rebound in funding rates, forming a healthy cycle.
Second-order effects: if the price keeps rising, shorts will be forced to cover, pushing the price to a short-term peak. However, the low funding rate (0.00005000) will attract arbitrageurs to sell spot and buy contracts, increasing market selling pressure and forcing early longs to take profits. Ultimately, the cost is borne by late buyers, and liquidity may shift to other assets with higher funding rates.
Invalidation conditions: this view becomes invalid if the price stays above 0.24495 and the funding rate rises to 0.0001 or above, indicating stronger buying or higher shorting costs, which changes the squeeze logic; or if OI drops sharply, showing dispersion of positions.
Action: do nothing and wait for a clear signal. Trigger conditions: if the funding rate rises to 0.0001 or above, a small long position can be attempted with a stop loss below 0.24495; if the price falls below 0.24495, avoid it entirely. In the current environment, chasing the move carries more risk than reward.