Over a ten-minute window, traders betting against SKR paid an escalating hourly fee to keep their positions open, signaling heavy crowded downward pressure.
Imagine SKR is trading around $0.0213. A huge crowd of traders is betting that the price will drop, but to keep those bets open, they must pay continuous fees to anyone willing to take the opposite side.
Over ten consecutive minutes, this fee grew steeper. The rate fell from -0.146% to -0.1536% per hour, meaning sellers became increasingly desperate to stay in their positions despite the climbing cost.
This mechanism is called the funding rate. In crypto futures, when the rate is negative, short sellers betting on a price drop pay cash directly to long buyers betting on a rise every interval to balance the market.
Think of it like an overcrowded boat leaning dangerously to one side. Ten consecutive alerts show sellers are flooding in so aggressively that they are willing to bleed money by the hour just to hold their ground.
Heavy selling pressure does not mean price will definitely fall. If the price ticks up even slightly, those crowded sellers might rush for the exit all at once, accidentally triggering a violent rally instead.
Don't think: Deep negative funding means the coin is going to drop. Think: Short sellers are extremely crowded and paying a steep premium, creating a tense setup that could snap in either direction.