SOON traders, look beyond positive funding before betting on a recovery

SOON is trading under sustained selling pressure from short-term holders even as perpetual funding rates stay positive, a divergence that complicates the case for a near-term recovery. Positive funding implies longs are still paying shorts to hold exposure, suggesting positioning remains crowded on the bullish side rather than washed out. That combination—persistent spot selling against paid-up long leverage—raises the risk of further downside or a long squeeze before any durable bottom forms. Traders watching for a reversal should monitor whether funding flips negative or open interest resets, signals that leveraged longs have been cleared and spot sellers exhausted. Until then, the positive funding print is better read as a warning than a confirmation of strength.