Recently, the $FHE market has shown an interesting phenomenon—funding rates are pulling in opposite directions, and the candlestick charts are testing people's resolve. The result is that the entire network is following the trend to short.

Careful examination of these short positions' opening prices shows that most are concentrated around the 0.0 level. In this situation, even if the market makers want to shake out the traders, the short sellers are hard to force into surrender. Why? As long as the funding rate remains positive, those holding positions will have a psychological comfort—at least they can earn some interest from the funding fee every day. This expectation greatly prolongs their holding patience.

From the account structure perspective, the long-short ratio currently shows a polarized distribution, and the same applies to large account allocations. Interestingly, the distribution of longs is also concentrated around the 0.0 level, and this ratio has not changed significantly before and after the price breaks previous highs. What does this imply? It may not be the true top yet.

Based on these observations, it is not advisable to enter short positions at this stage. Even near previous highs, rushing to short is risky. The real opportunities for shorting are when the funding rate turns negative and the market makers no longer hide their intentions; or when the advantage of large account longs is no longer overwhelming. But the problem is, once these signals appear, the market often reacts lightning-fast—if you're not watching the charts all the time, you might easily miss that window.

In contrast, waiting for a clear correction signal before going long seems to be a more practical choice. The risk is more controllable, and the psychological pressure is lower.