Short Squeeze Alert for Celestia and Sui's Incredibly High Funding Rates
High Funding Rates Indicate Potential Short Squeeze
As October unfolded, the influence of short-selling in the cryptocurrency market grew substantially. Celestia (TIA) and Sui (SUI) have emerged as strong indicators of this trend due to their extreme funding rates. According to CoinGlass, TIA short-sellers are facing a staggering 124.88% APR, whereas SUI encounters funding rates of 71.54% APR. These figures mark them as the most negatively skewed among the top cryptocurrencies with the highest open interest.
Sui's Short Squeeze Dynamics
Sui reached an all-time high open interest of $502.28 million on October 2, 2024, amid soaring short positions. On October 4, it recorded a significant negative funding rate, signaling potential for a short squeeze as investor demand might soon shift directions. The last notable imbalance in funding rates led to substantial price upticks in August.
Celestia's Historical Funding Rate Analysis
Simultaneously, Celestia is showcasing extreme funding rates near -125%, a trend that could incite a short squeeze if current dynamics persist. While TIA's funding rate remains severe, it mirrors previous instances where substantial funding rate negatives induced price surges. However, traders must proceed with caution due to prevailing market sentiment.
- Monitor investor sentiment closely.
- Assess market conditions regularly.
- Be aware of potential price manipulations.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.