“Altcoins on the edge”

Crypto analysis platform AMBCrypto predicts that high funding rates and accumulated liquidity could affect the rise of altcoins.

The other day, there was a $9,000 drop in the price of Bitcoin (BTC). The drop in question led to the liquidation of nearly $1 billion from the crypto market. The #Bitcoin drop negatively affected altcoins, which have recently gained great interest. Many altcoins lost nearly 10 percent of their value when the BTC price fell by $9,000.

AMBCrypto warned that the crash that occurred on November 5 could be repeated. The analysis, published under the title “Altcoins on the edge”, touched on price movements in the last three months.

Altcoins, which have been on the rise since November, reached their highest funding rates in the last nine months. According to AMBCrypto’s analysis, altcoins are at risk of liquidation.

The analysis included the following statements; “In the current market conditions, investors may be exposed to long (bullish) liquidations.”

The 30-day funding rates of continuous futures, which have reached 4 to 6 percent monthly, indicate that risk appetite has increased and the use of high leverage has increased.

Historical data shows that rapid price increases and rising funding rates usually occur before corrections. In a similar scenario last experienced in January, altcoins had fallen by 15 percent. The analysis emphasized that a new correction is on the way.

AMBCrypto, which recommended that investors act more carefully in the coming days, noted the following; “High altcoin funding rates can cause millions of dollars to evaporate.”

According to CoinGlass data, the 30-day funding rate in continuous futures has reached the highest levels of the year. Traders who open long-term transactions pay a monthly funding fee of 4 to 6 percent to maintain their leveraged positions.

Stating that even experienced traders cannot afford to pay high funding fees, AMBCrypto stated that selling pressure may increase if crypto prices stagnate or fall.

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