Traders betting against SKR paid steep fees over a ten-minute window to keep their trades open, signaling intense seller dominance in the market.
Imagine SKR is trading at around two cents. Suddenly, a massive wave of traders all jump in at once, betting heavily that the token price is about to plunge.
Because so many traders were betting on a price drop, the market became severely unbalanced. For ten straight minutes, these sellers had to pay an ongoing penalty reaching negative 0.1588 percent directly to buyers just to keep positions open.
This fee is called the funding rate. In crypto derivative markets, exchanges make the overcrowded side pay the minority side on a regular timer so contract prices stay tethered to the actual spot market price.
A single fee spike can be a momentary quirk. But ten consecutive alerts mean traders were willingly bleeding cash over an extended window to hold their downward bets, reflecting persistent and aggressive selling pressure.
This signal does not guarantee SKR will keep falling. When sellers pay steep fees, even a slight bounce in price can panic them into closing trades at once, which can accidentally spark a sharp, sudden rebound.
Do not think SKR is doomed because sellers dominate. Think of it as an overcrowded side of a boat leaning heavily one way, where any sudden wave can cause a sharp lurch in the opposite direction.