The futures market, especially for ETH, BTC, SOL, XRP, and DOGE, has shown massive trading activity over the past 24 hours. However, we are not just talking about trading volume numbers; we are discussing indicators that reflect a clear state of instability and risks that could affect anyone entering this market. There are clear signs that long positions in some cryptocurrencies, such as Solana, Dogecoin, and Ripple, are more than double the short positions. Additionally, financing rates hovering around zero or sometimes negative indicate a state of imbalance. This does not necessarily mean an immediate crisis, but it certainly suggests that the market requires extreme caution.
Because most traders in these contracts use high leverage, with numbers reaching 40 or 50 times the original capital. This means that even a slight drop in price could hit these positions and trigger automatic liquidation chains, leading to a massive selling wave that pressures the entire market. This is not just a possibility; it is a realistic scenario that recurs with every market fluctuation.
But the market always has counter movements, and there are large investors and funds trying to balance the market and reduce risks. So, these indicators are not necessarily the end of the world, but they are a clear message that the market needs monitoring, and investing in it requires a plan and risk management, not just luck.
There is an important point we need to clarify here: these futures contracts, despite their significance as an indicator, have a clear legal status. The Sharia law considers trading in them to be prohibited due to the uncertainty and gambling involved, especially with high leverage and the absence of an actual commodity or clear economic interest. Therefore, we do not encourage anyone to engage in them directly or consider them a legitimate investment; rather, we only use their data as a tool to understand market sentiment.