$PAYP 24-hour fell 2.11%, price 16.7, and the funding rate during the same period returned to zero. A zero funding rate usually means long and short positions are paying each other in perfect balance, with no clear one-sided market bias.
A slight price drop paired with a zero funding rate is a wait-and-see state in microstructure terms. The last similar setup on another instrument saw the price oscillate in a narrow range for three days before choosing a direction. Right now, $PAYP 's open interest of 21260.99 has not noticeably shrunk, which suggests holders are also waiting for a signal rather than panic selling.
Trading tag: #TradFi #链上美股 #PAYP
Where do you think this line of reasoning is most likely to be wrong?
A slight price drop paired with a zero funding rate is a wait-and-see state in microstructure terms. The last similar setup on another instrument saw the price oscillate in a narrow range for three days before choosing a direction. Right now, $PAYP 's open interest of 21260.99 has not noticeably shrunk, which suggests holders are also waiting for a signal rather than panic selling.
Trading tag: #TradFi #链上美股 #PAYP
Where do you think this line of reasoning is most likely to be wrong?