Santiment, an analytics firm, has recently uncovered some interesting trends regarding three altcoins on the Binance exchange. Tron (TRX), Stellar (XLM), and 1inch Network (1INCH) have all been experiencing negative funding rates on Binance, indicating a bearish sentiment among traders. The Funding Rate is a metric that tracks the fees exchanged between long and short contract holders on derivatives exchanges like Binance. A positive value suggests a bullish market sentiment, while a negative value indicates a bearish sentiment.
In the case of these three altcoins, the Funding Rate has been in the red recently, with traders betting against a price increase. 1inch Network seems to be the most affected, with a negative 0.079% funding rate. While this bearish trend may seem concerning, it could actually be beneficial for the prices of these altcoins. When there are heavy bets against an asset, it can lead to liquidations that act as “rocket fuel” for the asset’s price to rise. Going against the crowd of doubters could potentially result in significant gains for traders.
As for Tron, the largest of the three altcoins, it has had a bearish week along with the rest of the cryptocurrency market. However, TRX investors have seen a positive monthly return of 18%, outperforming Bitcoin. The price chart for Tron indicates a steady increase in value over the past few weeks.
Overall, the negative funding rates for Tron, Stellar, and 1inch on Binance may actually help fuel potential rebounds in their prices. It will be interesting to see how these altcoins perform in the coming weeks, especially with the possibility of a price surge fueled by liquidations from bearish traders. Keep an eye on these altcoins as they navigate the volatile cryptocurrency market.
