Question 1

What are crypto funding rates?

Accepted Answer

Funding rates are periodic payments between long and short traders on perpetual futures contracts. When funding is positive, longs pay shorts (bullish sentiment). When negative, shorts pay longs (bearish sentiment). High positive funding rates often precede price corrections, making them valuable shorting signals.

Question 2

How do liquidations signal shorting opportunities?

Accepted Answer

Large cascading liquidations often indicate overleveraged market conditions. When long liquidations spike, it can create a cascade effect pushing prices lower. The terminal tracks real-time liquidations across exchanges to identify potential short entry points during leverage flushes.

Question 3

What whale movements indicate bearish conditions?

Accepted Answer

Whale deposits to exchanges often precede selling pressure. The terminal monitors large wallet movements to exchanges, exchange outflows, and whale wallet activity. Significant exchange inflows from whale wallets can signal upcoming sell pressure and potential shorting opportunities.