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Rising Open Interest and Negative Funding Point to Growing Short Pressure in Select Altcoins
- A shift in derivatives market with rising open interest and negative funding rates indicates growing short pressure in select altcoins.
- Traders opening shorts with significant size suggest bearish expectations for price movements in altcoins like Zcash ($ZEC) and others.
- Zcash stands out with a substantial increase in open interest alongside a negative funding rate of -0.17% signaling heightened bearish sentiment.
- Assets like NEO and FET also show signs of potential directional stress with rising leverage and flat price action.
- Open interest for AIOT has decreased while maintaining a mildly negative funding rate, indicating reduced bearish pressure or tentative trading behavior.
- The increased one-sidedness in the derivatives market, with rising open interest and declining funding rates, suggests a market bias towards downward price movements.
- The concentration of short positions raises the risk of a potential short squeeze, leading to a sharp upward price movement as shorts are forced to cover their positions.
- Traders are advised to monitor these setups closely as they indicate potential continuation of current sentiment or a possible reversal in the market.
- Disclaimer: This summary does not constitute trading or investment advice; thorough research is recommended before engaging in cryptocurrency investments.
- Stay updated with the latest news in the Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse sectors by following @nulltxnews on Twitter.
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