The market for LIGHT has been quite volatile these past few days, and many traders have been through a rough time. Observing the market data, there is an interesting phenomenon - the current funding rate is still in the negative phase. What does this mean? From the perspective of the market maker, if the cost of stabilizing the market data is lower than the profit brought by the short-term whipsaw plus the income from the negative rate, then there is no need to violently dump.

There is a key trading cycle to pay attention to: the funding rate is settled every four hours. Each four-hour node is essentially a potential turning point. For those who are already trapped, the real opportunity for relief may lie in the moment the funding rate turns from negative to positive. After the rate turns positive, the incentive structure of the market will change, and the previously suppressed rebound momentum may be released.

In other words, as long as the funding rate remains negative, those who are trapped still have hope. Once it turns positive, that will be the time to test one's mindset and strategy. The direction of this market trend largely depends on when the rate will reverse.