Short positions have increased significantly alongside the rise in price. This will yield certain outcomes.

1- It's possible that the price will rise further to liquidate short positions.

2- There might be a secondary scenario where the decline persists after short positions are liquidated.

3- It's advisable to monitor the liquidity of positions for the time being. A decline is likely when short positions are closed.

I'd like to provide some information about this indicator.

If the funding rate is positive, the long rate is high, and those opening long positions pay a commission to those opening short positions. If the funding rate is negative, the short position dominates, and those in the short position pay a commission to those opening long positions. The purpose of this is to maintain balance with the spot market.

Written by XBTManager