$BABA dropped 5.83% over the past 24 hours, trading at 112.82. The funding rate is positive at 0.00085, and the open interest is 179,000 contracts. While the price is moving downward, the funding rate is still positive—buyers are clearly hard-pressing by adding positions. In terms of politics, the direction of US-China technology regulation is unclear, and market sentiment is being suppressed. This kind of structure is prone to triggering a liquidation cascade; once it breaks below 110, stop-loss orders are likely to fire in sequence. I think there won’t be a rebound in the short term. I won’t touch the contract until the funding rate turns negative. If the price holds above 115 and the funding rate turns negative, then I’ll consider a small-position long.

Trading tag: #TradFi #链上美股 #BABA

Where do you think this assessment is most likely to be wrong?