Funding rate has turned positive. What signals does this reveal about the perpetual contract market?

According to Odaily Planet Daily citing the latest analysis from Glassnode, the funding rate trend in the perpetual contract market has shown a positive change. The 7-day moving average funding rate (7D-SMA) has risen from near zero to approximately 0.005%, then retraced to 0.003% within the following 24 hours. This fluctuation reflects a subtle shift in market sentiment.

Interpretation of Funding Rate Data

The funding rate is an important indicator of the relative strength between long and short positions in the contract market. Recent data shows that the rate has rebounded from the zero boundary, indicating that the bullish forces are gradually recovering. However, the current level of 0.003% remains relatively low, still far from traditional bullish market signals.

Insights from Historical Patterns

Market experience shows that when the funding rate stabilizes above 0.01%, it is often accompanied by a sustained upward trend. Although the current market has not yet reached this decisive threshold, the improving trend itself has already released some optimistic signals. It can be understood as the bullish forces gathering but not yet fully dominant.

Current Environment Assessment

Overall, the perpetual contract market still has certain upward momentum support, and the improvement in the funding rate indicates that bullish enthusiasm is warming up. However, considering that the rate has not yet broken through a key level, this stage should be viewed as a market preheating period, and a truly strong signal requires further confirmation.