Traders betting on SKR to fall are paying an unusually high fee to those betting on a rise. This persistent negative funding shows extreme downward crowding in the market.
Imagine SKR is trading at about $0.0218. A huge wave of traders rushes to bet that the price will drop, far outnumbering anyone willing to bet that it will rise.
Over ten straight minutes, a steady penalty hit those betting on a drop, peaking at -0.0678% per hour. Even as SKR stayed near $0.0218, sellers kept paying buyers.
This recurring fee is called the funding rate. When most traders bet one way, they must pay cash directly to traders on the other side so the market stays balanced.
A single alert could be a brief glitch, but ten in a row reveals relentless short pressure. Sellers are so eager to bet on a drop that they willingly bleed cash.
This does not mean the price will fall. When too many traders crowd into short bets, any sudden upward tick can force them to close, triggering a sharp rally.
Do not think sellers paying fees means an easy drop. Think of it as a crowded exit where sellers are burning money to hold their ground, leaving them vulnerable.