$FLNC On a single day it dropped 25%. The price was smashed down to 7.09, but the funding rate is still positive at 0.0006. The price has crashed hard, and the longs are still paying the shorts. This scene is too brutal. It means that people who are bullish are not only losing money—they’re bleeding every day to keep funding the opposing order book.
This structure is typical “many kill many.” During the decline, a positive funding rate means the long positions that are bottom-fishing and holding are not yet fully liquidated. They’re trapped, yet still paying. The market hasn’t become panicked enough for stop-loss orders to trigger collectively. Next, if the price keeps grinding lower, this batch of longs may not be able to withstand funding fee erosion and the increase in unrealized losses, leading them to close positions in a clustered way, creating a fresh wave of sell pressure.
On the other hand, open interest at 370,000 contracts hasn’t collapsed, which indicates positions are still hanging there. But this isn’t support—it’s potential explosives. The shorts are currently collecting fees, so there’s no reason for them to voluntarily pull back.
Invalidation condition: if the price rebounds quickly and the funding rate turns negative, it would mean the shorts are starting to run and the bulls are launching a counterattack. Until that happens, this downward pressure will continue.
My actions are very clear: I will place a short order and enter on the rebound. I’ll set the stop-loss slightly above today’s high, around 8 dollars. If it breaks below 7, consider adding to the position. Position sizing should be within 5% of total capital—this volatility is too high, don’t go all-in.
Trading tag: #TradFi #链上美股 #FLNC
Where do you think this assessment is most likely to be wrong?
This structure is typical “many kill many.” During the decline, a positive funding rate means the long positions that are bottom-fishing and holding are not yet fully liquidated. They’re trapped, yet still paying. The market hasn’t become panicked enough for stop-loss orders to trigger collectively. Next, if the price keeps grinding lower, this batch of longs may not be able to withstand funding fee erosion and the increase in unrealized losses, leading them to close positions in a clustered way, creating a fresh wave of sell pressure.
On the other hand, open interest at 370,000 contracts hasn’t collapsed, which indicates positions are still hanging there. But this isn’t support—it’s potential explosives. The shorts are currently collecting fees, so there’s no reason for them to voluntarily pull back.
Invalidation condition: if the price rebounds quickly and the funding rate turns negative, it would mean the shorts are starting to run and the bulls are launching a counterattack. Until that happens, this downward pressure will continue.
My actions are very clear: I will place a short order and enter on the rebound. I’ll set the stop-loss slightly above today’s high, around 8 dollars. If it breaks below 7, consider adding to the position. Position sizing should be within 5% of total capital—this volatility is too high, don’t go all-in.
Trading tag: #TradFi #链上美股 #FLNC
Where do you think this assessment is most likely to be wrong?