$DJT 24 dropped 5.47% in 24 hours to 8.98, but the funding rate has gone to zero. A price decline accompanied by a neutral funding rate indicates that the current selling pressure is not being driven by derivatives short-arbitrage; it is more likely coming from spot selling or off-exchange dumping. The one-way decline without shorts actively opening positions means the market lacks clear directional consensus.
If the price continues to fall and the funding rate turns negative, that would be the signal that shorts are beginning to enter for arbitrage, and the decline could then accelerate. Under the current structure, shorts have not become crowded, so any rebound lacks the basis for a squeeze.
Do not chase shorts.
Trading tag: #TradFi #链上美股 #DJT
Where do you think this line of reasoning is most likely to be wrong?
If the price continues to fall and the funding rate turns negative, that would be the signal that shorts are beginning to enter for arbitrage, and the decline could then accelerate. Under the current structure, shorts have not become crowded, so any rebound lacks the basis for a squeeze.
Do not chase shorts.
Trading tag: #TradFi #链上美股 #DJT
Where do you think this line of reasoning is most likely to be wrong?