๐ป Analysts: Low Funding Rates Confirm Bearish Market Trend
๐ Recent data from Coinglass shows that funding rates for perpetual contracts across major centralized and decentralized exchanges have dropped below the baseline of 0.01%.
This is a strong indicator of a bearish sentiment dominating the crypto market, with most traders expecting further price declines.
๐ Funding rates are a mechanism used to keep contract prices aligned with spot prices. They involve periodic payments between long (buyers) and short (sellers) positions โ depending on market conditions โ without exchange fees.
๐ Currently, major coins like BTC, ETH, and SOL have funding rates below 0.005%, a clear signal that bearish momentum is growing, and short positions are gaining dominance.
๐ What This Means for Traders:
The market shows strong signs of downward pressure.
Short sellers may find opportunities, but long positions should be protected with solid risk management strategies.
Volatility remains high โ so stay alert and informed before opening any positions.
๐ฌ Are you trading with the trend or against it?
Let us know in the comments and remember to always check funding rates before entering a trade!
