$STEEM This lower shadow is interesting—the price was dumped from 0.0763 down to 0.05466. In a 22.85% drop, the late segment was forcibly pulled back to above six cents, suggesting that there are buyers picking up at the 0.0546 level.
The fee rate is the abnormal part. A -0.8297% funding rate means that for every eight hours a short position is held, shorts have to pay a cost of 0.83%. That burns 2.49% per day in daily compounding, and over a week the principal evaporates by 16%—the shorts are essentially holding on at the cost of their lives. But the price is still being hammered lower, which indicates that the actual selling pressure is far greater than what the fee-rate penalty alone can deter.
On the K-line chart, 0.0586 is exactly where the intraday rebound level is capped. Below it, 0.0546 is the pierced low of this sharp selloff. Above it, 0.0650–0.0680 is a densely trapped zone.
#STEEM
The fee rate is the abnormal part. A -0.8297% funding rate means that for every eight hours a short position is held, shorts have to pay a cost of 0.83%. That burns 2.49% per day in daily compounding, and over a week the principal evaporates by 16%—the shorts are essentially holding on at the cost of their lives. But the price is still being hammered lower, which indicates that the actual selling pressure is far greater than what the fee-rate penalty alone can deter.
On the K-line chart, 0.0586 is exactly where the intraday rebound level is capped. Below it, 0.0546 is the pierced low of this sharp selloff. Above it, 0.0650–0.0680 is a densely trapped zone.
#STEEM