🚨 Funding ADA -68%/year: Will the short side get squeezed to exhaustion?
Cardano ($ADA ) Funding Rate is at an all-time deep negative level, reaching -0.0077%/hour, equivalent to -68%/year. This is an extreme figure, indicating that the short side is having to pay a very large fee to the long side to maintain their positions.
With Open Interest (open contracts) still around $40.51 million, and ADA price down 4.3% over the past 24 hours, pressure on those betting on a price drop is increasing. I think this is the time to be extremely cautious.
Historically, when funding is excessively negative, a counter-move in price can trigger a wave of liquidations, pushing the price up sharply—also known as a short squeeze. Will history repeat itself with ADA this time?
Reference information only, not investment advice. DYOR.
#ADA
Cardano ($ADA ) Funding Rate is at an all-time deep negative level, reaching -0.0077%/hour, equivalent to -68%/year. This is an extreme figure, indicating that the short side is having to pay a very large fee to the long side to maintain their positions.
With Open Interest (open contracts) still around $40.51 million, and ADA price down 4.3% over the past 24 hours, pressure on those betting on a price drop is increasing. I think this is the time to be extremely cautious.
Historically, when funding is excessively negative, a counter-move in price can trigger a wave of liquidations, pushing the price up sharply—also known as a short squeeze. Will history repeat itself with ADA this time?
Reference information only, not investment advice. DYOR.
#ADA
