The old dog swept the order book. In
$SNOW 24 hours, it surged 20.716%, and the price reached 370.26. But the funding rate is negative: -0.00036761. This combination is kind of interesting—big gains paired with a negative funding rate. The shorts are paying the longs; it’s the typical “shorts cornered” kind of smell.
Behind this rally, I think a short squeeze (shorts getting squeezed) plays a major role. The “funding rate direction” rule is very clear: if the rate is below zero, the shorts are paying. With the price shooting up, the shorts’ losses expand, so they’re forced to close positions or add margin. Then their stop-loss orders end up pushing the price higher in return, creating positive feedback. The
$SNOW 24-hour trading volume is $36.58 million—not a massive amount, but combined with the negative funding rate, it suggests that during the rally, the share of buys from short liquidations isn’t small. Compared with other coins in the same sector, there’s no other reference pair, which implies this might be an isolated event, or that liquidity from the entire US stock-linked contracts chain is converging at the point
$SNOW . Open interest (OI) is only 7634.62, so the position size isn’t large—making it easy for a concentrated buy order to punch through.
The old dog’s takeaway: chasing at current levels has a poor risk-reward ratio. A negative funding rate means the shorts have already been squeezed once; the positions that could blow up likely already did. Even though the longs are collecting fees, a 20% daily surge has already overdrawn short-term momentum. I’ll choose to watch from here, waiting for a decent pullback, or for confirmation that the funding rate can stay negative and bring in new buy pressure. If I have to act, I’d do it with light exposure near key support—not rushing in at around 370.
Someone in the market is definitely shouting “the trend is starting.” I disagree with that. The reason is that after a day of explosive upside, profit-takers and earlier breakout-unwound traders will create selling pressure. Without fresh capital to take over, it’s hard for the move to continue.
Where is this judgment most likely wrong? If the
$SNOW price can hold steady around 370, and the funding rate continues to remain negative while open interest rises moderately, that would suggest fresh shorts are still entering while longs patiently accumulate. Then the short squeeze logic can keep playing out, and my conservative wait-and-see would be correct. If such signals appear, I’ll reassess the timing to enter. Another invalidation condition is if the funding rate quickly flips positive—meaning longs start crowding in, risk appetite reverses, and the whole logic changes.
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