RESEARCH NOTE

Why Negative Funding Is Not Automatically Bullish

Negative funding means shorts are paying longs at the current funding settlement. It does not mean price must rise.

What matters

Funding can become very negative during genuine downtrends, illiquid squeezes, listing events or crowded hedging. The better question is whether other conditions confirm a meaningful anomaly: is OI changing, is short-term price structure stabilizing or strengthening, is participation expanding, and is the perpetual trading at an unusual basis?

How Money Radar uses this

Money Radar treats funding as one factor in an anomaly ranking, never as a standalone long signal.