ACE recorded ten consecutive minutes of deeply negative funding rates near -0.16 percent. This highlights intense crowding among traders betting on price drops.
Imagine ACE is trading at around $0.20. A massive wave of traders rushes in, all wanting to place bets that the price is about to fall.
Between 10:31 and 10:41 UTC, the fee for holding a downward bet stayed locked near -0.16 percent every single minute, while ACE price held steady near $0.20.
In futures markets, this fee is called the funding rate. When it is deeply negative, traders betting on a drop must pay regular cash payments directly to traders betting on a rise just to keep their bets open.
Think of a bus where everyone is rushing to sit on the left side. To keep the vehicle balanced, left-side riders have to pay cash incentives to anyone willing to sit on the right side.
Ten consecutive alerts show persistent pressure rather than a random spike. Paying steep fees every hour drains short sellers quickly, making them vulnerable if the price ticks up.