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Recently, there has been an interesting phenomenon in the perpetual contract market. The funding rate rebounded from near 0% to about 0.005%, but in the last 24 hours, it slipped back to around 0.003%. What does this operation indicate?
Generally speaking, for the market to truly sustain a rally, the funding rate needs to stay above 0.01% to have confidence. At this level? Honestly, the market still has support, but it's a bit short of the strong bullish signals that would make traders feel secure.
In other words, the enthusiasm for going long is there, but it hasn't reached a frenzy level yet. This stage is mainly about observing whether the market can break higher. If the funding rate continues to rise and breaks through the 0.01% threshold, that would be a real indication of a solid support for the upward move. The current situation is more of an observation period, and we need to keep watching how the market develops.