Shorting ORCA has been making a killing lately, right? Let me pour a bucket of cold water on that — you guys are the final fuel.
Look at this set of data: ORCA -0.40%, T -0.35%, AKE -0.33%, ACE -0.29%, CXMT -0.24%. It’s all negative funding rates, and not the tiny kind like -0.01%; these are ridiculously negative.
Negative funding = crowded shorts = can get squeezed at any time.
Everyone understands that, but why say the shorts are the final fuel? Because once all the shorts that should’ve been criticized have been washed out of the market, who’s left in there? Whoever is left is the next one to get buried.
BTC is now at $79665, and funding is only 0.0055%, so longs and shorts are still fairly balanced. But for the small coins above, shorts are already so crowded they can barely breathe.
I’ve been burned by this myself — I once shorted a coin with negative funding, the price kept falling, my position tripled, and I thought I was safe. Then one needle-like spike in the middle of the night wiped out all my shorts.
So my plan now is: don’t chase shorts, just watch. If any of them rebounds on heavy volume, I’ll consider a small long position.
What do you think — how long can this wave of shorts hold on? Or will the reversal come faster than everyone expects?
#Write2Earn #Crypto
⚠️ Personal opinion, not investment advice.
Look at this set of data: ORCA -0.40%, T -0.35%, AKE -0.33%, ACE -0.29%, CXMT -0.24%. It’s all negative funding rates, and not the tiny kind like -0.01%; these are ridiculously negative.
Negative funding = crowded shorts = can get squeezed at any time.
Everyone understands that, but why say the shorts are the final fuel? Because once all the shorts that should’ve been criticized have been washed out of the market, who’s left in there? Whoever is left is the next one to get buried.
BTC is now at $79665, and funding is only 0.0055%, so longs and shorts are still fairly balanced. But for the small coins above, shorts are already so crowded they can barely breathe.
I’ve been burned by this myself — I once shorted a coin with negative funding, the price kept falling, my position tripled, and I thought I was safe. Then one needle-like spike in the middle of the night wiped out all my shorts.
So my plan now is: don’t chase shorts, just watch. If any of them rebounds on heavy volume, I’ll consider a small long position.
What do you think — how long can this wave of shorts hold on? Or will the reversal come faster than everyone expects?
#Write2Earn #Crypto
⚠️ Personal opinion, not investment advice.