High Funding Rate – is it a SHORT signal?
I see many people asking: With such a high funding rate, should we short?
👉 The answer is: it's not that simple.
The funding rate only reflects the crowd's sentiment, not a signal to enter a trade.
A high funding rate means many people are LONG, but the price can still continue to rise or go sideways to eat away at funding.
📌 Personal perspective: I don't use funding to predict peaks and troughs, but to assess the level of risk.
👉 The answer is: it's not that simple.
The funding rate only reflects the crowd's sentiment, not a signal to enter a trade.
A high funding rate means many people are LONG, but the price can still continue to rise or go sideways to eat away at funding.
📌 Personal perspective: I don't use funding to predict peaks and troughs, but to assess the level of risk.
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