Across the market, shorts are all paying funding right now.
$SOL funding rate: -0.0069%/8 hours; $ADA : -0.0208%; $TRX : -0.0304%. Annualized, that’s -7.6%, -22.8%, and -33.3%—shorts have to pay longs every 8 hours.
Negative funding rates tell us one thing: there are too many shorts, and everyone is leaning bearish. But funding rates are also a contrarian signal. The more shorts have to pay, the more fuel there is for a short squeeze. If a rebound really takes off, shorts will be among the first to run.
So don’t just see negative funding and shout “more downside,” or see it and call for a short squeeze. The key is to watch two things: how long funding has been negative, and whether spot prices are following it down. When funding is negative but spot holds steady, it’s often the calm before a market turn.
Do you usually watch funding rates? #TradingTips
$SOL funding rate: -0.0069%/8 hours; $ADA : -0.0208%; $TRX : -0.0304%. Annualized, that’s -7.6%, -22.8%, and -33.3%—shorts have to pay longs every 8 hours.
Negative funding rates tell us one thing: there are too many shorts, and everyone is leaning bearish. But funding rates are also a contrarian signal. The more shorts have to pay, the more fuel there is for a short squeeze. If a rebound really takes off, shorts will be among the first to run.
So don’t just see negative funding and shout “more downside,” or see it and call for a short squeeze. The key is to watch two things: how long funding has been negative, and whether spot prices are following it down. When funding is negative but spot holds steady, it’s often the calm before a market turn.
Do you usually watch funding rates? #TradingTips