Short sellers must feel like they’re getting beaten up while still having to pay protection money. $SOPH is trading at 0.002150, up 7.5% in a day, yet the funding rate has plunged to -0.86%—short sellers are losing on price and also having to pay longs.
Put simply: a funding rate this negative means shorts are already packed in like sardines. The higher the price goes, the more they have to pay. They can either cut their losses and close out, or tough it out and keep paying. The more crowded one side gets, the faster a cascade can happen.
I’d lean toward sitting tight for now, because an extreme funding rate doesn’t mean an immediate reversal, and a short squeeze still needs a trigger. But if it breaks above 0.002610, the 24-hour high, I’ll change my mind immediately and admit the squeeze is really underway.
Shorts are losing money and still paying fees. At $SOPH , do you think the squeeze has more room to run, or should longs take their profits while they can?
$SOPH
#行情分析 #Data Watch
Put simply: a funding rate this negative means shorts are already packed in like sardines. The higher the price goes, the more they have to pay. They can either cut their losses and close out, or tough it out and keep paying. The more crowded one side gets, the faster a cascade can happen.
I’d lean toward sitting tight for now, because an extreme funding rate doesn’t mean an immediate reversal, and a short squeeze still needs a trigger. But if it breaks above 0.002610, the 24-hour high, I’ll change my mind immediately and admit the squeeze is really underway.
Shorts are losing money and still paying fees. At $SOPH , do you think the squeeze has more room to run, or should longs take their profits while they can?
$SOPH
#行情分析 #Data Watch