SOL, DOGE, ETH Funding Rates Flash Warning for Market: Details
2025-01-27
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In a recent analysis shared on X, on-chain analytics platform Glassnode indicated that the hourly funding rates across the top five assets on the market — Bitcoin BTCUSD, Ethereum ETHUSD, Solana SOLUSD, XRP and Dogecoin DOGEUSD — show that the appetite for long positions has not returned to levels seen during the November-to-early-December rally. This suggests a lack of aggressive demand on the markets.
Funding rates act as a key indicator within the market, with an impact directly related to market sentiment. High funding rates often imply that traders are bullish and anticipate future price increases, which could indicate an overheated market. On the other hand, low funding rates frequently indicate bearish expectations, implying that prices may fall.
The hourly funding rates for the top 5 assets in the market ( $BTC, $ETH, $SOL, $XRP, $DOGE) show the appetite for long positions has not returned to the levels seen in the November to early December rally. This indicates a lack of aggressive demand: https://t.co/OgHajLaucH pic.twitter.com/9bloZA2Q97
Glassnode indicated that based on the 168 HR moving average of funding rates, all top assets, particularly Bitcoin, showed positive momentum early last week. In contrast, Solana continues to experience a diminishing funding rate regime, which has persisted since December.
The lack of aggressive demand for long positions suggests that traders might be taking a cautious stance, implying that the market could remain rangebound or experience mild pullbacks in the days ahead.
What's ahead?
The cryptocurrency market is gearing up for a significant week as investors anticipate the Federal Reserve's next meeting and key inflation data.
The markets are bracing for impact as the Fed prepares to announce its next monetary policy decision at its January meeting on Wednesday. Alongside the Fed meeting, the release of new inflation data scheduled for Friday will be keenly watched.
The cryptocurrency market is currently under selling pressure as investors book profits ahead of this year's first Federal Open Market Committee meeting.
At the time of writing, Bitcoin was down 3.83% in the last 24 hours to $100,954 after dipping as low as $97,715 in today's trading session. Solana's SOL and Dogecoin DOGEUSD are currently down 8.46% and 10.46%, respectively, in the last 24 hours, while Ethereum ETHUSD and XRP lost up to 6%.