HOLO has recently exhibited an interesting phenomenon—the contract fee rate dropped to -1.01%. What does this number indicate?

From a fee perspective, a negative rate means that short sellers are being "taxed." In each cycle, shorts have to pay to replenish longs to maintain their positions. When the price refuses to fall and instead rises, this psychological pressure rapidly intensifies. Continuous capital consumption forces some shorts to give up resistance and turn long, creating new buy orders.

What does the data say? The open interest in perpetual contracts is about $11.49 million, with a long-short ratio close to 1:1. The competition for funds is quite fierce but not overly concentrated. More importantly, regarding liquidation events—shorts have been wiped out by $1.89 million, while longs only saw $790,000 liquidated, a significant disparity. These liquidations mainly occurred during price increases—shorts were washed out, and longs profited. Additionally, despite a 15% price rise, there are no obvious signs of position reduction; instead, it suggests that major players are quietly accumulating at low fee rates.

But watch out for potential traps. Spot trading volume is relatively low compared to futures, ranging between $5 million and $17 million in 24 hours, which provides room for futures to dominate the price unilaterally. If the overall BTC market weakens, HOLO, as a small-cap coin, could be dragged down. Also, keep an eye out for black swan events—project issues, exchange risks, etc.—though currently, everything appears stable.

From a trading perspective, the current price at $0.08562 USD could be a good entry point. The first take-profit target is set at $0.094 USD, based on the recent 4-hour volatility and a relatively conservative 10% profit goal. The stop-loss is placed at $0.083 USD, which is about 3% below the entry price and also a recent support level.

Overall, an extremely negative fee rate combined with significant short liquidations signals a typical short squeeze before it happens. The key will be how subsequent capital flows and overall market trends develop.