$SNOW In the past 24 hours, it surged nearly 19%, with the price hitting 379.53. But the funding rate is negative, -0.0032, meaning shorts are paying longs.
This setup is very typical: the price jumps hard, yet the funding rate remains negative. It suggests this rally is not mainly driven by new leveraged long positions being added, but rather shorts can’t hold and are forced to cover, resulting in a short squeeze. While shorts are losing money, they’re also continuing to pay the funding fee—putting them under heavy pressure.
On the other hand, if overall U.S. stock sentiment doesn’t turn more positive with new catalysts, the sustainability of a rise driven purely by squeezing shorts is questionable. Once profit-takers start to exit, the price could pull back; then these shorts may stop covering, and the upward momentum would disappear.
In the next phase, we’ll watch the 379.53 level. If it can hold steady, shorts may be forced to keep covering, and there’s a chance the price could surge higher with momentum. If the price drops and breaks below 375, I would consider that the peak of the squeeze has passed and switch to a wait-and-see stance.
Right now, the risk-reward for chasing longs isn’t great. I’ll choose to wait. If price retraces to around 370 and the funding rate remains negative, I would consider a small-position long, with a stop-loss placed below 365.
Trading tag:
#TradFi #链上美股 #SNOW
Where do you think this judgment is most likely to be wrong?