Funding Excessive in Altcoin Project Rising 50 Percent in 2 Days: Is It Time for a Decline?

The performance of the altcoin project in the last 2 days raised questions about the continuation of the rise.

Celestia (TIA) pleased its investors by rising 48.8% in the last 2 days. TIA price climbed from $4.97 to $7.42 during this time frame.

TIA, which stands out as the project that recovered the fastest from declines, stood out as the highest rising project of the last 24 hours on CoinGecko. However, the excess in funding rates in the stock markets raised expectations of a further rise or a sudden decline.

Pay attention to funding rates

However, analysts were skeptical about this increase in TIA's price. Market experts, pointing to CoinGlass data, argued that funding rates still indicate a further decline.

Average funding rates on exchanges turned negative over the weekend and have since fallen to -0.1231%, levels last seen in January.

These rates, which reveal that many investors make short-oriented transactions, were also interpreted as liquidity that could fuel the rise. If everyone is trading with the expectation that something will fall, it is known as the law of the market that that product will rise.

It is thought that the funding fee traders currently pay for the short positions they carry will become a burden as long as prices remain resilient, and may eventually force them to close their bearish bets.

According to CoinGecko data, TIA, which has increased by 7% in the last 24 hours, is traded at $ 6.78 at the time of writing.