The long position on PIPPIN opened at 2 a.m. has already paid 4% in funding fees so far, which is quite a tuition fee for this wave of market movement. However, from the position structure, there might be a chance to turn this loss around.

Why are we bullish on PIPPIN? Mainly because two signals are speaking. One is the long-short ratio data — in the context of healthy open interest, the proportion of shorts is significantly higher, and this kind of imbalance often signals a reversal. The other more interesting aspect is the leverage trading position limits, which suggest that the main participants are small retail investors, as large institutional involvement is low.

Retail investors tend to hold many chips but lack unity. What does this mean? Once a large-scale liquidation is triggered, it often marks the start of a short-term market acceleration. Especially since the K-line has already broken through 0.525 and stabilized, it’s highly likely that the market will enter an acceleration phase.

The longer the sideways consolidation lasts, the more beneficial it is for the bulls. Shorts are paying funding fees every day, and this consumption is real. There are no strong accumulation zones of chips above, mainly just retail stop-loss levels. Once liquidations begin, the chain reaction will be very obvious.