🚨 Funding ZRO +88%/year: long crowd is holding up or about to break?
I just glanced at the funding chart and was startled: $ZRO đ is sitting around ~+0,0101% per hour, which works out to ~+88% per year. That number is definitely not normal.
In simple terms: funding is the fee paid by the side with more positions (the crowd) to the other side every few hours. Here, the long side (betting on price going up) is paying the short side (betting on price going down). That usually means longs are overcrowded and under pressure. Meanwhile, ZRO is down -7,4% over 24 hours, volume is ~26,9 million USD, and Open Interest (total value of open positions) is ~63,68 million USD.
I can’t say for sure, but this kind of “out-of-phase” situation often leaves a trap: if price bounces back, the longs that are already heavily loaded could be forced to close positions in large numbers, creating a squeeze effect (price spikes due to forced buy orders). Or, if the long side breaks first, liquidations could hit downward.
Reference info only, not investment advice. DYOR.
#ZRO
I just glanced at the funding chart and was startled: $ZRO đ is sitting around ~+0,0101% per hour, which works out to ~+88% per year. That number is definitely not normal.
In simple terms: funding is the fee paid by the side with more positions (the crowd) to the other side every few hours. Here, the long side (betting on price going up) is paying the short side (betting on price going down). That usually means longs are overcrowded and under pressure. Meanwhile, ZRO is down -7,4% over 24 hours, volume is ~26,9 million USD, and Open Interest (total value of open positions) is ~63,68 million USD.
I can’t say for sure, but this kind of “out-of-phase” situation often leaves a trap: if price bounces back, the longs that are already heavily loaded could be forced to close positions in large numbers, creating a squeeze effect (price spikes due to forced buy orders). Or, if the long side breaks first, liquidations could hit downward.
Reference info only, not investment advice. DYOR.
#ZRO
