$MAGIC Yesterday at 15:00, a single needle-like plunge wiped out nearly 40% from the peak, yet shorts in the perpetuals market are still losing money 🧐
Binance data at 00:01: MAGIC perpetual funding rate: -0.397%. 24-hour perpetual trading volume: 1.03 billion U, ahead of SOL and behind only BTC and ETH.
Such a negative funding rate suggests that even after the plunge, a large crowd is still chasing shorts. A crowded short trade is fuel for a rebound.
My take: this looks more like bulls and bears squeezing each other than a market that’s already finished. I haven’t found a clear news catalyst for this round of dramatic rises and falls; the volatility seems to be driven entirely by capital flows.
If the spike low at 0.098 holds, the pressure of paying funding could force some shorts to cover. The first level to watch above is 0.1225, near the MA25.
If 0.098 breaks and the funding rate turns positive at the same time, that would mean the bears won this round, and my view would be invalidated.
Which do you think it will hit first: 0.098 or 0.1225?
Source: Binance perpetuals data
$MAGIC #山寨币 #BinancePerpetuals
#BinanceSquare
⚠️ The above is a summary of information and my personal opinion. It does not constitute investment advice. DYOR.
Binance data at 00:01: MAGIC perpetual funding rate: -0.397%. 24-hour perpetual trading volume: 1.03 billion U, ahead of SOL and behind only BTC and ETH.
Such a negative funding rate suggests that even after the plunge, a large crowd is still chasing shorts. A crowded short trade is fuel for a rebound.
My take: this looks more like bulls and bears squeezing each other than a market that’s already finished. I haven’t found a clear news catalyst for this round of dramatic rises and falls; the volatility seems to be driven entirely by capital flows.
If the spike low at 0.098 holds, the pressure of paying funding could force some shorts to cover. The first level to watch above is 0.1225, near the MA25.
If 0.098 breaks and the funding rate turns positive at the same time, that would mean the bears won this round, and my view would be invalidated.
Which do you think it will hit first: 0.098 or 0.1225?
Source: Binance perpetuals data
$MAGIC #山寨币 #BinancePerpetuals
#BinanceSquare
⚠️ The above is a summary of information and my personal opinion. It does not constitute investment advice. DYOR.