KERNEL was up 57% yesterday, but today it reversed and fell 8%. Current price: $0.0587.
Dropped—shouldn’t shorts be happy? First, look at two things.
Across the whole network, open positions are not falling but actually rising—up nearly 20% in a day, and reclaiming $13.3 million. When the price drops and open interest rises, it’s not old shorts taking profit. It’s new short orders queuing to enter. The ones who missed out yesterday are coming in today to top up their positions.
When people crowd in, rent gets more expensive. Binance funding rate is -0.0032. Shorts pay 0.32% every 8 hours—nearly 1% in a day, annualized over 350%. As long as the price holds sideways for a week, shorts end up paying a 7% “rent” first.
Liquidation-side stays quiet by default: in the entire network over 24 hours, only $328k was cleared—$158k from longs and $170k from shorts. Longs ran early; now it’s shorts competing against each other in a frenzy. This kind of deeply negative funding can only end in two ways: either it keeps drifting lower, and shorts profit from the spread while deducting the “rent”; or there’s a rebound wave—squeezing shorts and charging rent at the same time.
How much longer do you still dare to hold this short position on KERNEL?
$KERNEL
Live view: https://www.coinboss.com/funding-rate