$SNOW funding rate has returned to zero, with a 24-hour drop of 5.2% to 339.32. This is a single-signal judgment: a zero funding rate usually means the prior one-sided long/short pressure has been temporarily released, but if the price keeps drifting lower, the selling pressure may be coming from the spot side. The strongest counterexample is if the price rebounds from this level, as the funding rate may quickly turn positive again and attract arbitrage. The second-order effect is that market makers may harvest volatility within a narrow range. If the price breaks below the previous low on heavy volume, this judgment becomes invalid. With volatility under 10%, you may consider taking a small long position with 1% of total capital and strictly set a stop loss.

Trading tag: #TradFi #链上美股 #SNOW

Where do you think this line of reasoning is most likely to be wrong?