Positive funding but prices are falling: Do the two data points contradict each other?
Not necessarily.
When funding is positive, Long positions pay fees to Short positions. If prices continue to fall, this may indicate that some traders are maintaining Long positions while the spot market weakens.
Another explanation is that demand for opening Long positions is not strong enough to change the price trend.
More open interest (OI) and liquidation data should be reviewed before drawing a conclusion. The funding data in this report comes from third-party trackers.
#SHELL #FundingRate #Derivatives
Not necessarily.
When funding is positive, Long positions pay fees to Short positions. If prices continue to fall, this may indicate that some traders are maintaining Long positions while the spot market weakens.
Another explanation is that demand for opening Long positions is not strong enough to change the price trend.
More open interest (OI) and liquidation data should be reviewed before drawing a conclusion. The funding data in this report comes from third-party trackers.
#SHELL #FundingRate #Derivatives