Traders betting on an ANIME price drop are paying an increasingly steep continuous fee to buyers to hold their positions open over a ten-minute surge.
Imagine ANIME is trading around $0.0029. Many traders simultaneously decide they want to bet that the price is about to fall. To do this, they enter contract positions that profit if the token drops.
Over ten straight minutes, so many traders piled into downward bets that the market became heavily lopsided. To balance things, sellers were charged an increasingly steep ongoing payment, worsening from -0.0674% to -0.0986%.
Over ten straight minutes, so many traders piled into downward bets that the market became heavily lopsided. To balance things, sellers were charged an increasingly steep ongoing payment, shifting from -0.0674% to -0.0986%.
This periodic fee between traders is called the funding rate. When the rate is negative, sellers pay buyers directly. The more crowded the selling side gets, the more negative the rate becomes to entice buyers to stay.
Ten consecutive alerts showing deepening negative rates show persistent selling pressure. But paying high ongoing fees puts a clock on those sellers; if the price does not drop fast enough, staying in the trade becomes very costly.