Over a ten-minute span, traders betting against ACE repeatedly paid fees directly to buyers just to keep their bets open, signaling crowded downward pressure.
Imagine ACE is trading around eighteen cents. A huge wave of traders enters the market all at once, eager to place bets that the price is about to fall.
Because almost everyone wants to bet on a price drop, there are not enough buyers to match them. To keep things balanced, sellers must pay an ongoing cash fee directly to buyers to convince them to take the trade.
This balancing payment is called the funding rate. When it stays deeply negative, around minus 0.064 percent per hour, it proves sellers are willing to lose cash every hour just to keep their downward bets open.
This fee did not just spike once. Across ten consecutive minutes, the rate remained heavily negative while ACE traded near $0.187, showing sustained and stubborn selling pressure.
Heavy selling pressure does not mean the price must fall. If the price rises even slightly, all those sellers paying expensive fees may rush to exit at once, accidentally triggering a sharp rally.
Do not think sellers paying fees guarantees an easy price drop. Think of it as an overcrowded bet where traders are paying a premium to stay, leaving the market vulnerable to sudden reversals.