High perpetual swap funding rates above 0.1% for 72 hours signal a bullish, leveraged market. This costs longs $90 per $10,000 over 3 days, eroding margins, especially at 50x leverage. Sustained high rates suggest overconfidence and overcrowding, raising liquidation risks if prices dip or stagnate. A cascade—where one liquidation triggers more—becomes likelier with high open interest and volatility. Historically, prolonged high funding precedes corrections, but 0.1% isn’t extreme (e.g., 0.5% has been seen). Without real-time data, the chance of a cascade might range from 20% to 50%, depending on leverage and market conditions. It’s a risk signal, not a guarantee—watch price action and volume. (139 words)
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I just collected "Farcaster: Lion"
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True love is when someone makes you feel cherished every single day, even in silence.
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