【Today's anomaly】$RSR rose 47% in one day, then pulled back 21% from its intraday high. But contract open interest doubled in 4 hours, from 2.12 billion coins to 4.89 billion, while the funding rate hit -1.79%—shorts are paying a hefty price to bet on a drop. (Data: Binance public API, checked at 17:22 on 10-12)
My take: After a sharp rally on the Upbit listing news, the price pulled back, but shorts are still adding to their positions—both sides are making big bets. What I’m watching for: if the funding rate stays negative and the price holds above 0.0023, short covering could fuel a second wave; if it breaks below 0.0021, shorts may take profits. This thesis is invalidated if the funding rate turns positive and open interest falls—that would mean shorts are retreating, and the story is over.
The sharper the rise, the more those betting on a drop have to pay. At this funding rate, are you betting on a short squeeze or continuing to short it?
Personal observation only; not financial advice.
My take: After a sharp rally on the Upbit listing news, the price pulled back, but shorts are still adding to their positions—both sides are making big bets. What I’m watching for: if the funding rate stays negative and the price holds above 0.0023, short covering could fuel a second wave; if it breaks below 0.0021, shorts may take profits. This thesis is invalidated if the funding rate turns positive and open interest falls—that would mean shorts are retreating, and the story is over.
The sharper the rise, the more those betting on a drop have to pay. At this funding rate, are you betting on a short squeeze or continuing to short it?
Personal observation only; not financial advice.