The funding rate remains high. No matter how much it falls, it increases instead of decreasing?
On the one hand, as prices fall, some profit takers should normally close their positions and collect profits, and the number of long positions will decrease.
When there is no major reversal in the currency market and the price falls, those who have made profits may hold on to their orders in the short term because they are optimistic about the target or are not in a hurry to reduce their positions because their opening prices are too low.
On the other hand, due to the influx of new investors, the number of short-term bulls is huge.
However, the subsequent sharp drop in prices has reason to believe that these two groups of people are deeply trapped. In addition, due to the active short selling by the market makers, the number is large and the head is small, which leads to the high positive funding rate.
