An advanced technique rarely shared, this is using the inverse correlation between price action and Funding Rate to detect trend exhaustion.
🔸 When a coin's price keeps breaking New Highs but the Funding Rate starts to decline or turns negative. This indicates active buying power is exhausted, price is rising only due to inertia or Short Squeeze, and Smart Money is no longer willing to pay fees to Long 👉 Sign of a bearish reversal.
🔸 Conversely, when price keeps breaking lows but the Funding Rate is no longer deeply negative and starts recovering to 0 or positive. This implies short sellers have taken profits and no longer want to chase sells 👉 Sign of a bottom formation.
🔸 Don't just look at candles; turn on the Funding Rate chart. Changes in fee structure often precede price volatility, giving you a better position than the rest of the market.
Next time you see price breaking a high, will you stare at the green candle or check what the real momentum from the Funding Rate is saying?
News is for reference, not investment advice. Please read carefully before making a decision.