The price has dropped from 31.5 to 23.7, a decline of over 24%, and the trend has already broken down.

What’s more noteworthy is the change in funding rates — from -2% sharply narrowing to -0.75%. It seems like the rate is rebounding, but what is the truth behind this? The main short sellers are closing their positions for profit during the sharp decline, while deliberately slowing down the downward momentum to reduce the entry cost for new buyers. In other words, this is preparing for the next round of accumulation.

Although the rate is still negative, this negative rate design is very "thoughtful" — its purpose is to attract newcomers who think "it’s time for a rebound after such a drop" or "can still earn some fee income." Once these people come in, the real second round of dumping will begin.

The current situation is as follows: the first round of dumping has ended, and the main players are setting up the second trap. If you are still stubbornly holding long positions, cutting losses now is bleeding; waiting any longer will lead to broken bones. Don’t go for those bloodied chips, and don’t bite on those prickly bait.