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Ever wondered how perpetual futures stay aligned with the spot market price? Enter the FUNDING FEES!
How it works?
Funding fee is a periodic payment between long and short position holders, based on the funding rate. - If the funding rate is positive, longs pay shorts. - If the rate is negative, shorts pay longs.
When is it charged?
It happens every 8 hours (or as per your exchange’s interval). The fee is either deducted from your futures wallet or added to it, depending on your position.
Example... You hold a $10,000 long position. - If the funding rate is 0.01%, you'll pay $1. - If it's negative, you'll earn $1 instead.
⚠️ PRO TIP: Always keep an eye on the funding rate in your futures trading dashboard. It directly impacts your PNL.
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Been a busy day. Servings on $TUT and $POPCAT we're on spot. Hope you guys profited well if ever you had initiative to enter trades with just basing on the insights I've shared.
Price finding resistance at lower Fib fan line. Break above needed. Fan lines align with horizontal resistance.
RESISTANCE: • 0.8566 • 0.9000 • 0.9501
SUPPORT: • 0.8277 • 0.7851
Short-term downtrend persists. Price attempting bounce, facing immediate resistance from EMAs, Fib fan, and 0.8566 level. MACD suggests potential bounce, but confirmation needed. Need to monitor reaction at resistance for next move.
Currently trading at $0.001958 (+0.46%), attempting recovery after a pullback from month of May's 200% impulse wave. Price sits at a critical decision point.
Price testing fast EMA from below. Reclaiming both EMAs would confirm bullish continuation. During May's surge, price remained above both EMAs, confirming the uptrend.
VAH around $0.002673 represents significant supply that must be absorbed for higher moves.
Price is also flattening on the ninja thread after downward slope, suggesting exhausting selling momentum. Awaiting upward slope for bullish confirmation.
MACD's blue line crossing above yellow line signals potential momentum shift. Histogram transitioning positive but overall reading remains low. Need to watch for increasing values to confirm strength.
Price finding support at 75% Fib fan line. Upper fan lines near $0.002344 and $0.003236 align with key resistance zones.
Price action has formed a series of lower highs across the recent impulse waves, a classic bearish market structure pattern. The most recent spike to 0.125 area was quickly rejected, showing sellers remain in control at higher levels. This rejection occurred right at the cluster of resistance levels visible on the right side of the chart ($0.125243).
While price briefly crossed above the fast EMA, it failed to maintain momentum and is now showing signs of crossing down. This type of failed breakout often precedes significant downside moves as trapped buyers exit positions.
Volume analysis reveals diminishing buying interest during recent attempts to push higher. The volume spikes on downward moves compared to upward moves suggests stronger selling pressure than buying conviction, a bearish signal for continuation.
MACD showing potential bearish divergence forming, with price making similar highs while the indicator makes lower highs. This typically precedes price corrections or trend reversals.
Key levels for bearish swing trade:
• $0.116854 • $0.114599 • $0.108202
Entry strategy would involve either:
1. Shorting at current levels with tight stop above $0.125243
2. Waiting for confirmation with a daily close below $0.114599, then entering with stop above the breakdown point
Risk management is crucial - a stop loss placed above $0.125243 would invalidate the bearish bias if triggered. The risk-reward ratio looks favorable with potential for 2:1 or greater returns targeting the lower Fibonacci levels.
Market context also supports this bearish outlook, as $MERL has shown inability to reclaim higher Fibonacci levels despite multiple attempts. The repeated rejection at lower highs indicates persistent selling pressure that has yet to be exhausted.
For swing traders with bearish bias, this setup offers an attractive opportunity with clearly defined risk levels and multiple profit targets at key Fibonacci supports. Ideal timeframe for this trade would be 1-2 weeks potentially.