The old dog took a glance at the 24-hour data for $MRVL , a 3.915% pump isn’t surprising, but what’s interesting is the funding rate has dipped to a negative 0.1427%, while the price keeps pushing up. This combo isn’t common on the TRADIFI order book. I flipped through the semiconductor contracts in the same sector, and there aren't many with negative rates like this. A negative funding rate means shorts are paying longs, and there’s a crowd of shorts, yet the price hasn’t tanked; instead, it’s slowly climbing. The shorts are facing unrealized losses and have to cover funding costs, which makes this structure a bit unhealthy.
Looking closely at the OI, there's an open interest of 178 million USDT paired with today’s trading volume of 83.95 million. The turnover isn’t too wild, but positions are steadily increasing. I remember a similar setup appearing during the last cycle when the semiconductor contract's funding turned negative, and the price held for three days. Eventually, the shorts got squeezed out, and the price shot up with a big bullish candle. Now on the $MRVL order book, the more the shorts hold on, the higher their funding costs become. The liquidity pool isn’t thick with sell orders either; I’ve been watching for a few days and often see thousand-plus buy orders propping up the price, with clear signs of market maker involvement.
The old dog’s view is simple: many in the market think $MRVL will top out above 280, but I disagree. With the funding rate this negative and still holding steady, it indicates stronger forces on the spot side are accumulating.
Trading tags: #BinanceFutures #TradFi #USDⓈM #MRVL #MRVLUSDT $MRVL
Looking closely at the OI, there's an open interest of 178 million USDT paired with today’s trading volume of 83.95 million. The turnover isn’t too wild, but positions are steadily increasing. I remember a similar setup appearing during the last cycle when the semiconductor contract's funding turned negative, and the price held for three days. Eventually, the shorts got squeezed out, and the price shot up with a big bullish candle. Now on the $MRVL order book, the more the shorts hold on, the higher their funding costs become. The liquidity pool isn’t thick with sell orders either; I’ve been watching for a few days and often see thousand-plus buy orders propping up the price, with clear signs of market maker involvement.
The old dog’s view is simple: many in the market think $MRVL will top out above 280, but I disagree. With the funding rate this negative and still holding steady, it indicates stronger forces on the spot side are accumulating.
Trading tags: #BinanceFutures #TradFi #USDⓈM #MRVL #MRVLUSDT $MRVL