An analytics firm has identified three altcoins on Binance that are witnessing a surge in bearish bets, hinting at a potential price rebound.
Tron, Stellar, and 1inch Witness Negative Funding Rates
Santiment, an on-chain analytics firm, shared insights on the Binance Funding Rate for several altcoins, shedding light on market dynamics.
The Funding Rate tracks the fees exchanged between traders on derivatives exchanges like Binance. A positive rate indicates a bullish sentiment, with long contracts paying a premium to short investors. Conversely, a negative rate suggests bearish sentiment.
The Binance Funding Rate for 1inch Network (1INCH), Tron (TRX), and Stellar (XLM) has been consistently negative, reflecting increased shorting activity.
This trend may lead to liquidations, acting as “rocket fuel” for price surges, especially if leveraged positions are involved.
TRX Price Performance
Tron, the largest among the three altcoins, observed a bearish week amid a broader cryptocurrency market downturn. However, TRX has shown resilience over the month, outperforming Bitcoin with an 18% surge.
Tron’s price chart illustrates its recent performance amidst the evolving market conditions.
