$HOOD dropped 3.9% over the past 24 hours, with trading volume of $64.84 million, yet the contract funding rate is zero. This is not a typical downtrend short “collecting fees” structure; a zero funding rate suggests that earlier accumulated short positions have been taking profits, which may temporarily ease one-way sell pressure. Trading activity remains active, indicating that buy-side interest is being absorbed, but selling momentum has not fully dried up. My view is that this provides a brief breathing room for price, but it is not a trend-reversal signal. The buying pressure from short covering is insufficient to absorb the overall sell pressure, so price is more likely to enter a tug-of-war range between $113 and $115.
A counterpoint: if there is a sudden headline about global risk-asset selloffs, $HOOD —as a traditional brokerage stock tied to crypto—could be dragged down again, causing the funding rate to turn negative once more and reach new lows. That would confirm the start of a new leg lower. The second-order impact is that the current-area oscillation will wear out the patience of short-term traders; trend followers may wait for a rebound above $114.5 before looking for another short opportunity.
My plan is to stay on the sidelines. If price rebounds to around $114.5 and volume expands, I would consider entering a small short position, with a stop-loss placed above $115.2. If price instead breaks directly below $113 and the funding rate turns negative, I will abandon the plan.
Trading tag: #TradFi #链上美股 #HOOD
Where do you think this setup is most likely to be wrong?
A counterpoint: if there is a sudden headline about global risk-asset selloffs, $HOOD —as a traditional brokerage stock tied to crypto—could be dragged down again, causing the funding rate to turn negative once more and reach new lows. That would confirm the start of a new leg lower. The second-order impact is that the current-area oscillation will wear out the patience of short-term traders; trend followers may wait for a rebound above $114.5 before looking for another short opportunity.
My plan is to stay on the sidelines. If price rebounds to around $114.5 and volume expands, I would consider entering a small short position, with a stop-loss placed above $115.2. If price instead breaks directly below $113 and the funding rate turns negative, I will abandon the plan.
Trading tag: #TradFi #链上美股 #HOOD
Where do you think this setup is most likely to be wrong?