Part 4/8:
Technical Indicators and Market Data
Funding Rate Analysis
A key metric discussed is the funding rate of Caspa, which indicates whether longs or shorts are dominant. Currently, the funding rate is positive, meaning more traders are long, paying longs to shorts. This suggests a market skewed towards bullish sentiment, with longs holding the majority.
Open Interest and Volume Trends
Recent data reveals a dramatic drop in open futures interest, falling from approximately $200 million to $50 million—a 75% liquidation overnight. This indicates a massive unwinding of positions, likely triggered by rapid market movements or liquidation events, which creates a foundation for a potential rebound if buying interest resumes.