Ever wondered why some dips feel "heavier" than others? It often comes down to the Funding Rate in the perpetual futures market. When everyone is bullish, long traders pay a fee to short traders. If the market dips and these "longs" get liquidated, it creates a domino effect—a "long squeeze."

Today’s lesson focuses on "Downside Exhaustion." When you see a high-cap asset like XRP or ETH hitting a multi-month low RSI (around 33) while volume begins to stabilize, it often signals that sellers are simply running out of "ammo." This doesn't mean an instant moon mission, but it suggests the risk-to-reward ratio is shifting in favor of the patient buyer.

Lesson: Price follows sentiment, but liquidity dictates the floor. Learning to read RSI alongside funding rates helps you identify when a sell-off is reaching its logical conclusion rather than just beginning.

Which indicator do you trust most when the sea turns red? 👇

$ETH

ETH

3,033.2

+1.91%

ETHUSDT

Perp

3,031.02

+1.89%