Six Assets With Negative Funding Rates to Keep a Close Eye on! 👀
An asset's funding rate can be a very valuable way of identifying where traders are feeling overconfident vs. fearful. As is the case with many fundamental metrics on Santiment, a high funding rate that indicates excessive trader confidence has historically shown a higher risk of corrections. Alternatively, a low funding rate that indicates excessive trader fear has historically shown a higher risk of price rises.
What is a quick method to find which funding rates are looking typically ripe for a short liquidation? Well, it starts by finding the assets that people are excessively shorting. You can use the Funding Rates Sansheets Model to find out which assets are veering into the green:
To access, once you have your Sanbase PRO account (or if you already do), you'll then want to check out any of the model links below and go to File -> Make a Copy, and simply:
1) Download Sansheets: https://academy.santiment.net/sansheets/setting-up/
2) Plug in your API: https://academy.santiment.net/sansheets/adding-an-api-key/
3) If you're having trouble getting the data to load on a model, head to the 'Data' tab on the far right of the spreadsheet, and go to the yellow cell. Then delete the cell formula, then hit Undo. This should manually refresh the data.
Now resuming the topic of funding rates, researching the top 150 crypto assets by market cap, we have identified six that are currently in the 'green zone', which is qualified by having an average funding rate on Binance and FTX, under 0.00.
The following is a list of the six we advise watching to see if there can be some upcoming liquidations and price rises in their futures:
Axie Infinity ($AXS) - Market Cap Rank: 31
Monero ($XMR) - Market Cap Rank: 42
Quantum ($QTUM) - Market Cap Rank: 101
Ankr ($ANKR) - Market Cap Rank: 124
Raydium ($RAY) - Market Cap Rank: 138
Digibyte ($DGB) - Market Cap Rank: 145
As always, remember that just one traditionally bullish metric does not just indicate that an immediate price bounce or spike for the 6 assets mentioned above. But in a vaccuum, these assets all currently having negative funding rates reveals that they are in a better position than average (and compared to other assets not in the negative range).
Disclaimer: The opinions expressed in this report are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.