$SQD 【Fee Master】 detected an abnormal SQD contract rate: -1.05%, here is the analysis:
Direction: Long Confidence: High
Core Logic: With an extreme negative rate of -1.05%, the price has strongly risen from a low of 0.057 to 0.068 and continues to resist falling, while the scale of short liquidations far exceeds that of longs (24h short liquidations 925,700 vs long liquidations 284,300), indicating that shorts are being significantly cleared, and spot buying is strongly supporting the short squeeze process.
1. Data Dashboard
- Rate Interpretation: The current extreme negative rate of -1.05% means that shorts are continuously paying high fees to longs, psychologically creating immense pressure on shorts, especially when prices rise, accelerating short cover or liquidation, forming a vicious cycle.
- OI Interpretation: The perpetual open interest of 22.46 million alongside rising prices indicates that funds are increasing their long positions, intending to push for a reversal rather than following the downward pressure.
- Liquidation Interpretation: Recently, short liquidations have dominated (with the latter half of short liquidations in the million range vs long liquidations in the tens of thousands), shorts are suffering (huge losses), while longs/spot buyers are profiting and clearing leveraged shorts.
2. Risk Assessment
- Main Risks: Although spot trading volume has increased, it still falls within the small to mid-cap level. If the broader market (BTC currently weak around 87k slightly down) further drags down, a short-term correction may occur; high-control coins are easily influenced by single large holders.
- Black Swan Check: No signs of projects running away, being stolen, or negative news; the market is operating normally.
3. Operational Recommendations
- Suggested Entry Zone: Near current price (0.068) or pullback to 0.065
- First Take Profit Level: 0.075-0.08 (based on recent volatility ~10-15% daily range)
- Stop Loss Level: 0.064 (no more than entry price -6%, or recent low support)
(The chart shows the 15m liquidation chart)
