POLYX contract has shown abnormal signals worth following——the rate has fallen to -1.59%, what is hidden behind this?

First, let's look at the data. The perpetual position is approximately $9.95 million, with longs and shorts almost balanced. The key point is the liquidation situation: in the past 24 hours, shorts were liquidated for $161,000, while longs were only $94,500. What does this mean? Shorts are continuously exiting, while longs are making profits.

The logic of negative rates is actually quite straightforward. -1.59% means that shorts have to keep paying longs to maintain their positions. If this continues for a long time, the mindset of shorts will break. They will either close their positions to stop losses or hold on to bet on a rebound. Now, the liquidation data shows that some shorts have already chosen the first path.

From the performance of the spot buying, funds are continuously entering the market, forming a typical short squeeze pattern. When negative funding rates meet strong upward trends, coupled with short sellers continuously exiting, the rebound is fully fueled.

However, risks must also be clearly understood. When social sentiment is overly optimistic, it often indicates a crowded situation. If trading volume suddenly shrinks, whether this wave of increase can be sustained is a question. Fortunately, no black swans have been observed in terms of projects or safety.

From a trading perspective, positions can be considered around $0.061. The first target is $0.066 (approximately 8% space based on recent volatility), with a stop loss set at $0.059 (no more than 3% drawdown). The key is still to closely monitor trading volume and fee changes, as they are the true indicators of sustainability.