SKR triggered ten consecutive alerts in ten minutes as short sellers paid unusually high fees to maintain downward bets, showing intense crowded selling pressure.
Imagine SKR is trading near $0.021. Traders who expect the price to fall pile into the market so fast that they vastly outnumber those betting on a rise.
Across ten minutes, the fee that sellers paid to buyers hit an extreme level of around negative 0.246 percent per hour. That means holding onto these downward bets was becoming unusually expensive.
In crypto derivatives, the funding rate is a regular payment between buyers and sellers to keep market prices aligned. When it turns deeply negative, short sellers must pay long buyers directly.
A single alert can be a temporary blip. Ten consecutive alerts show that traders are stubbornly holding aggressive short bets even while paying heavy ongoing penalties to do so.
Deep negative funding does not mean the price is guaranteed to fall. If the price stops dropping, high fees can force short sellers to quickly close positions, which can actually spark a rapid price spike.
Do not think extreme negative funding guarantees an immediate crash. Think of it as a crowded room where any unexpected reversal can trigger a stampede.