After a quick look, $USAR is up 2.188% over the past 24 hours, and the price is now stuck at 17.75. This kind of gain, paired with a funding rate of 0, is interesting. It suggests the current move is entirely driven by spot, while longs and shorts in the futures market still haven’t clearly separated. Open interest stands at 111,000 contracts, which isn’t especially high. Combined with the zero funding rate, there isn’t the kind of crowded-trade liquidation risk you’d normally see in the short term.

My view is that this kind of spot-driven, zero-funding rally usually depends on external news or continued capital inflows to keep going. Without the pressure from an opposing side in the funding rate, price elasticity is actually limited.

Trading tags: #BinanceFutures #TradFi #USDⓈM #USAR #USARUSDT $USAR