I was talking with a friend about $SLX yesterday, saying how there are still such drops these days? Today, I’ll show you a 22% single-day plunge—price dropping straight from 0.35 to 0.25, and the funding rate turning negative to -0.052%. What does this indicate? The bears are aggressively adding to their positions, liquidating in a panic, every position is being aggressively shorted.

After falling so much, and with the rate so negative, it means the bears are already full. But an extremely negative funding rate is often a sign of a bottom—too many shorts, and a slight rebound can blow them up. But the question is, would you dare to buy at this level? The intraday low of 0.244 is just below, if it dips again, the bulls will have to cut losses.
If you are the bears, do you now think, “A little more and I can break the bulls”? Or are you already hesitating whether to close and run? The data is on the table, think for yourself.