[M1_mag7]
NBIS’s 24-hour drop is capped at -5.478%, with the price holding at 212.41, while the funding rate is -0.00146688. This combination is rather interesting: the price is falling, but shorts have to pay longs.
A negative funding rate together with a downward price move doesn’t fit the typical short-squeeze script. Usually, a selloff paired with a negative rate means shorts are actively adding to their short positions, even willing to pay costs to maintain the trade. The current position size is 63606.99; combined with the price level, this suggests that shorts haven’t backed off despite continuous funding payments. Instead, they may still believe there is downside room. The trading volume is 9,943,223.4962 (in USDT), which provides liquidity, but it hasn’t been enough to reverse the direction of the price.
I think this is still a bear-dominated setup. The negative funding value is the cost shorts are paying, but the price continues to fall—indicating that selling pressure or the intention to short temporarily outweighs that cost. Going long against the trend is extremely risky. My action is to stay put, unless the price can regain strength and reclaim above 215, or the funding rate clearly turns positive—then it would suggest a potential shift in the balance between bulls and bears.
The counterargument would be that a negative funding rate is the prelude to a squeeze; once it has dropped enough, a rebound should follow. But that requires clear evidence that shorts close their positions after the price stabilizes—right now, that signal is missing.
Trading tag: #BinanceFutures #TradFi #USDⓈM #NBIS #NBISUSDT $NBIS
NBIS’s 24-hour drop is capped at -5.478%, with the price holding at 212.41, while the funding rate is -0.00146688. This combination is rather interesting: the price is falling, but shorts have to pay longs.
A negative funding rate together with a downward price move doesn’t fit the typical short-squeeze script. Usually, a selloff paired with a negative rate means shorts are actively adding to their short positions, even willing to pay costs to maintain the trade. The current position size is 63606.99; combined with the price level, this suggests that shorts haven’t backed off despite continuous funding payments. Instead, they may still believe there is downside room. The trading volume is 9,943,223.4962 (in USDT), which provides liquidity, but it hasn’t been enough to reverse the direction of the price.
I think this is still a bear-dominated setup. The negative funding value is the cost shorts are paying, but the price continues to fall—indicating that selling pressure or the intention to short temporarily outweighs that cost. Going long against the trend is extremely risky. My action is to stay put, unless the price can regain strength and reclaim above 215, or the funding rate clearly turns positive—then it would suggest a potential shift in the balance between bulls and bears.
The counterargument would be that a negative funding rate is the prelude to a squeeze; once it has dropped enough, a rebound should follow. But that requires clear evidence that shorts close their positions after the price stabilizes—right now, that signal is missing.
Trading tag: #BinanceFutures #TradFi #USDⓈM #NBIS #NBISUSDT $NBIS